P.R. Laws tit. 23, § 6029
(a) Recovery of the investment in securities of a Fund. — Any distribution made by a Fund to the participants, including a distribution of income from non-tourist activities, shall be exempt of all income taxes and the amount of said distribution shall reduce the adjusted base the participant has in the securities of a Fund as of the date of distribution. This adjusted base shall never be reduced to less than zero.
(b) Taxation in distributions of a Fund. — Any distribution made by a Fund in excess of the base of the participant in the securities of a Fund shall be ninety percent (90%) exempt from taxation. The remaining ten percent (10%) shall be subject to taxation pursuant to the applicable provisions of §§ 8006 et seq. of Title 13.
History —Sept. 10, 1993, No. 78, § 19.