P.R. Laws tit. 23, § 693e
(a) Conversion. — Any exempted business under the Industrial Incentives Acts which would otherwise be an eligible business under subsection (a)(6) of § 693a of this title shall be deemed to be an eligible business and shall enjoy the tax incentives provided by §§ 693b, 693c and 693d of this title:
(1) If it complies with the requirements of said sections;
(2) If, after prior recommendations from the instrumentalities that submit endorsements under this chapter, the Governor determines that the conversion of such businesses to its provisions is in the best social and economic interests of Puerto Rico;
(3) If, on or before December 31, 1988, it waives its tax exemption decree issued under the Industrial Incentives Acts and obtains a certificate from the Director of the Tax Exemption Office accrediting said waiver in order to enjoy the incentives of this chapter, and
(4) if it files the certificate mentioned in clause [(3)] of this subsection along with the notice from the Secretary of the Treasury provided by subsection (c) of § 693g of this title.
(b) Distributions. — The distributions of dividends or profits (as well as distributions in liquidation) made by a corporation or partnership that has been an exempted business, and has exercised the option provided in subsection (a) shall be deemed as made (except for an express determination to the contrary in the resolution declaring the distribution) of the surplus accumulated during the period it enjoyed tax exemption under the Industrial Incentives Acts, and shall be governed by the provisions of the acts under which they have been governed. Once said surplus is exhausted, the provisions of §§ 8006 et seq. of Title 13, known as the “Income Tax Act” shall apply.
History —June 2, 1983, No. 52, p. 94, § 6; July 24, 1985, No. 20, p. 727, § 3; May 31, 1988, No. 35, p. 132, § 5.