P.R. Laws tit. 13, § 30533
The proportion of credit notices for productivity and patronage that special employee-owned corporations credit to internal capital accounts of ordinary and special members and which are not excluded from the members’ gross income pursuant to the provisions of § 30102(a)(17)(B) of this title shall not be subject to the income tax imposed by this part to corporations. Regular and special members shall be liable for income tax attributable to distributions made to them by means of credit notices for productivity and patronage, as if they had carried out the activity in their individual capacity. Notwithstanding the distributive share of regular and special members with respect to credited credit notices for productivity and patronage, which consist of tax-exempt interest earned and paid out by the special corporation, as well as income derived from agriculture subject to the deduction provided in § 30132 of this title, to the extent established in said section, shall preserve its character as tax-exempt income in the hands of regular and special members. Likewise, the distributive share of credit notices for productivity and patronage credited to internal capital accounts of regular and special members, with respect to income earned and paid out by the special corporation from activities or commercial transactions declared tax-exempt under the industrial and tax incentives laws, including for that purpose §§ 693 et seq. of Title 23, known as the “Puerto Rico Tourism Incentives Act of 1983”, and §§ 6001 et seq. of Title 23, known as the “Puerto Rico Tourism Development Act of 1993”, or any other tax exemption law similar in nature, shall be subject to the provisions related to distributions of tax-exempt income of each one of said laws, as applicable.
History —Jan. 31, 2011, No. 1, § 1113.03, retroactive to Jan. 1, 2011.