Esta ley enmienda el Código de Rentas Internas de Puerto Rico para eximir del pago de impuestos sobre la renta los salarios pagados a atletas puertorriqueños de alto rendimiento a tiempo completo, según lo establecido en la Ley del Fondo y la Junta para el Desarrollo de Atletas Puertorriqueños de Alto Rendimiento a Tiempo Completo.
(Approved August 7, 2002)
To add a paragraph (44) to clause
(b) of Section 1022 of Act No. 120 of October 31, 1944, as amended, known as the "Puerto Rico Internal Revenue Code of 1994" in order to exempt from gross income the salaries paid to Puerto Rican full-time high performance athletes, pursuant to the provisions of Act No. 119 of August 17, 2001, known as "The Fund and the Board for the Development of Full-Time High Performance Puerto Rican Athletes Act."
The Olympic autonomy that our Island enjoys has allowed us to obtain significant awards at the world level in the different disciplines of athletic events, which confirms the sports and political identity of Puerto Ricans who wholeheartedly celebrate the triumphs of the teams that represent us abroad.
The preparation of an athlete for national and international competitions requires rigorous training with experienced professional in the fields of sports and health. For many years, our athletes have had to use their own financial resources to cover training expenses, and have continued working to support and provide the basic needs of their families.
However, in other countries of the world where athletes practice fulltime to participate in international competitions, their competitive performance is greater. To attend to this situation, the Government of the Commonwealth of Puerto Rico approved Act No. 119 of August 17, 2001, known as "The Fund and the Board for the Development of Full-Time High
Performance Puerto Rican Athletes Act", which provides great benefits to athletes, among which are the payment of salaries, grants, and contributions to medical and life insurance. The Fund may also be used to contract trainers, physicians, nutritionists, psychologists, biomechanics, physical trainers, exercise physiologists, and other professionals needed for the training of an athlete.
Through this Act, the Legislature of Puerto Rico amends Section 1022 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994" to exempt from the payment of income taxes the salaries paid by the Board to full-time high performance athletes, pursuant to the provisions of Act No. 119 of August 17, 2001. In this manner, we are in compliance with the public policy of developing strategies to support sports and athletes who have the necessary capacity and attitude to compete in Olympic, Para-Olympic and international competitions.
Section 1.- Paragraph (44) is hereby added to clause
(b) of Section 1022 of Act No. 120 of October 31, 1994, as amended, to read as follows: "Section 1022.- Gross Income
(a) ...
(b) Exclusions from Gross Incomes.- The following items shall not be included in the gross income and shall be exempted from taxes in this Subtitle: (1) $\ldots$ (4) Salaries paid to Puerto Rican high performance athletes pursuant to the provisions of Act No. 119 of August 17. 2001, known as "The Fund and the Board for the
Development of Full-Time High Performance Puerto Rican Athletes Act."
Section 2.- This Act shall take effect on July 1, 2002, and shall continue in effect until the year 2008, inclusively.
I hereby certify to the Secretary of State that the following Act No. 109 (S.B. 1170) of the $\underline{3}^{ ext {rd }}$ Session of the $\underline{14}^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add a paragraph (44) to clause
(b) of Section 1022 of Act No. 120 of October 31, 1944, as amended, known as the "Puerto Rico Internal Revenue Code of 1994" in order to exempt from gross income the salaries paid to Puerto Rican full-time high performance athletes, pursuant to the provisions of Act No. 119 of August 17. 2001, known as "The Fund and the Board for the Development of Full-Time High Performance Puerto Rican Athletes Act,",etc,. has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $14^{ ext {th }}$ of October of 2002.
Elba Rosa Rodríguez-Fuentes Director
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