P.R. Laws tit. 13, § 381
(a) As used in this chapter, the terms set forth hereinafter shall have the following meaning:
(1) Gross income. — Has the meaning provided in Section 1022 of Act No. 120 of October 31, 1994, known as the “Puerto Rico Internal Revenue Code of 1994”. In the case of life insurance companies, gross income has the meaning contained in Section 1202, while for insurance companies that are not life insurance companies or mutual companies, the gross income is as provided in paragraph (2) of subsection (c) of Section 1207 of the Code.
(2) Taxpayer. — Any corporation or partnership organized as profit-making whose gross income generated on the tax year ending on or before December 31, 2005, is of more than ten million dollars ($10,000,000), except those that have an election under Subchapters K or N of the Code, every corporation organized as non-profit which is exempt pursuant to Section 1101 of the Code and any registered investment company exempt under Section 1361 of the Code.
(3) Taxable net income. — Means net income subject to normal taxation, as defined in subsection (a) of Section 1015, in subsection (c) of Section 1201, in paragraph (2) of subsection (c) of Section 1204, in subsection (a) of Section 1207 of the Code, as the case may be. The definition of taxable net income does not include industrial development income (pursuant to the Puerto Rico Tax Incentives Act of 1987 and the Tax Incentives Act of 1998, [both as] amended), tourism development income (as defined in the Puerto Rico Tourism Incentives Act of 1983 and the Puerto Rico Tourism Development Act of 1993, [both as] amended) nor the income proceeding from the rendering of medical-hospital services (as defined in §§ 371 et seq. of this title).
History —May 16, 2006, No. 98, § 2; July 31, 2006, No. 137, § 1, retroactive to May 16, 2006.