P.R. Laws tit. 13, § 254
(a) Any natural or [juridical] person engaged in an eligible business is hereby exempted from the payment of taxes on his net income deriving from shipping activities, for a period of ten (10) years.
(b) Ships and property of any other kind, real and personal, utilized in relation with an eligible business, shall not be subject to municipal or commonwealth taxes on real and personal property, for a period of ten (10) years. If a person engaged in an eligible business utilizes property belonging to him, as well as property belonging to another person, said exemption shall be applicable to his property, and shall separately and independently apply also to the property of such other person.
(c) Eligible businesses shall be exempt from the payment of license taxes, excises, and other municipal taxes imposed by any ordinance of any municipality, for a period of ten (10) years. These exemptions shall take effect when the taxpayer shall notify the corresponding municipalities that it or he has been granted by the Governor the benefits of this subchapter.
(d) In the case of exemptions from the payment of property tax the same shall take effect from the fiscal year next following that in which the taxpayer shall notify the Secretary of the Treasury that it or he has been granted the benefits of this subchapter. In the case of exemptions from income tax the same shall take effect beginning with the taxable year during which the Secretary of the Treasury is notified by the taxpayer that it or he has been granted the benefits provided by this subchapter.
(e) The Governor of Puerto Rico may, upon proper application therefor, grant the exemptions provided in this subchapter whenever he shall find, after consultation with the Economic Development Administration and the Secretary of Commerce, that such exemption is necessary and convenient for the development of the economy and welfare of the Commonwealth of Puerto Rico on the grounds that: (a) it will provide greater maritime freight transportation facilities between ports in Puerto Rico and ports in foreign countries; and (b) it will provide such specific services as the Governor may find necessary to the development of the economy and welfare of the Commonwealth of Puerto Rico.
History —June 28, 1966, No. 126, p. 395, § 1.