Ley 174 del 2001
Resumen
Esta ley enmienda la Ley de Incentivos Contributivos de Puerto Rico de 1998 para eximir del pago de arbitrios el equipo y la maquinaria utilizada por negocios exentos para cumplir con requisitos ambientales, de seguridad y salud, así como el equipo y maquinaria instalada en negocios de Call Centers o Redes. El objetivo es equiparar los incentivos con otras jurisdicciones para atraer inversión y crear empleos.
Contenido
(N.B. 1664) (Conference) (Approved December 17, 2001)
AN ACT
To add clauses (3) and (4) to subsection
(c) of Section 6 of Act No. 135 of December 2, 1997, as amended, known as the "Puerto Rico Tax Incentives Act of 1998," in order to exempt from the payment of excise taxes the equipment and machinery used by exempted businesses in certain activities related to their operations, and to renumber clauses (3), (4) and (5) as clauses (5), (6), and (7).
STATEMENT OF MOTIVES
Throughout its industrial history, Puerto Rico has been an example of a country that has encouraged foreign and domestic enterprises to establish their operations on the Island, through an assortment of special tax incentives, so as to create jobs for its residents.
The dynamic market in which we compete calls for all kinds of innovations that will allow Puerto Rico to continue developing its industrial and commercial sectors. To achieve this, it is necessary to equate the business attractions offered by other world jurisdictions with which we compete. Thus, we must improve the incentives that Puerto Rico offers so that it may continue to be competitive at world level.
Jurisdictions such as Singapore, Ireland, Indonesia, Malaysia and others, do not impose excise taxes on those operations that require the use of specialized machinery and equipment pertinent to environmental control, safety, and health matters, which are not used directly in the manufacturing
processes of said operations. This is due to the fact that in order to establish their operations in those jurisdictions, these enterprises need to comply with the safety, environmental and health requirements.
Said equipment and machinery usually entail a considerable cost for the industry, and when the tax for the introduction of said equipment is added, said cost is much more onerous for the operations of the industries.
Furthermore, telemarketing services operations such as Call Centers, require sophisticated equipment for their establishment. Puerto Rico must foster the establishment of such centers, since they immediately create a great many jobs without affecting the environment.
In view of the disparity between our scenario as compared with other jurisdictions, it is convenient to amend the provisions related to tax exemptions for those businesses that qualify for obtaining the tax exemption provided in the Tax Incentives Act of 1998, regardless of whether the equipment and machinery of said enterprises are to be used directly in the manufacturing process. This amendment is necessary in order for us to equate the exemptions provided in other jurisdictions, so that we may attract and stimulate these businesses to establish their industrial operations on the Island. If we offer an incentive of this nature to those businesses that wish to operate under Act 135, supra, this will become a useful and effective promotional tool to help attract new investments in Puerto Rico, which will, in turn, lead to the creation of jobs as a result of the establishment of these industries in Puerto Rico.
This exemption will not affect the present revenues of the Department of the Treasury since it is prospective in nature and shall be limited to those operations that qualify under the Tax Incentives Act of 1998.
BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:
Section 1.-Clauses (3) and (4) are hereby added to subsection
(c) of Section 6 of Act No. 135 of December 2, 1997, as amended, to read as follows: "Section 6.—Exemptions
(a) ...
(b) ...
(c) Exemption from Commonwealth Excises (1) ... (2) ... (3) Any equipment and machinery that must be used by an exempted business to comply with environmental, safety and health requirements for its business to operate adequately, shall be fully exempted from the payment of Commonwealth excise taxes. (4) Any equipment and machinery that must be installed in those businesses engaged in operating Call Centers or Networks that establish their operations in Puerto Rico, regardless of the place in Puerto Rico where each employee performs his/her work."
Section 2.-Clauses (3), (4), and (5) of subsection
(c) of Section 6 of Act No. 135 of December 2, 1997, as amended, are hereby renumbered as clauses (5), (6) and (7).
Section 3.-This Act shall take effect immediately after its approval, but its provisions shall become effective for the taxable years beginning after December 31, 2001.
CERTIFICATION
I hereby certify to the Secretary of State that the following Act No. 174 (H.B. 1664) (Conference) of the $2^{ ext {nd }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add clauses (3) and (4) to subsection
(c) of Section 6 of Act No. 135 of December 2, 1997, as amended, known as the "Puerto Rico Tax Incentives Act of 1998," in order to exempt from the payment of excise taxes the equipment and machinery used by exempted businesses in certain activities related to their operations, and to renumber clauses (3), (4) and (5) as clauses (5), (6), and (7), has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $26^{ ext {th }}$ of September of 2002.
Elba Rosa Rodríguez-Fuentes Director