P.R. Laws tit. 23, § 693d
(a) For purposes of the tax exemption granted by § 693c of this title:
(1) Every eligible business that is operating and has requested the benefits of this chapter by December 31, 1985, shall enjoy a ten (10)-year tax exemption period as of its taxable year commencing after December 31, 1984.
(2) Every eligible business that requests the benefits of this chapter on or after January 1, 1986, shall enjoy a tax exemption period of ten (10) years except in conversion cases, whose exemption period shall be effective retroactively to January 1 of the year in which the notice of conversion was filed.
(3) The period for clauses (1) and (2) of this subsection may be extended for ten (10) additional years if the Governor of Puerto Rico, with the prior recommendation of the Executive Director of the Puerto Rico Tourism Company and the Secretary of the Treasury, determines that said exemption is essential for the development of the tourist industry.
(b) The exemption provided herein shall be in effect for a total of ten (10) years. The exempted business may choose the specific years of coverage by notice to the Secretary of the Treasury to such effects by filing an Income Tax return for each of the specific ten (10) years that are covered. Provided, That the exempted business shall have the option to avail itself of the provisions of this subsection instead of those in subsection (a) of this section, when it so advises it during its first taxable year and/or prior to filing the income tax return for said year, in which case, the provisions of subsection (a) of this section will not apply to it.
History —June 2, 1983, No. 52, p. 94, § 5; July 24, 1985, No. 20, p. 727, § 2; May 31, 1988, No. 35, p. 132, § 4.