Esta ley enmienda la Ley Núm. 166 de 29 de junio de 1968 para modificar los requisitos de presentación del certificado de nacimiento para los pensionados que reclaman la exención contributiva sobre sus pensiones. Establece que el certificado de nacimiento solo debe presentarse la primera vez que se reclama el beneficio, simplificando el proceso administrativo para los pensionados.
(NO. 459) (Approved September 23, 2004)
To amend subsection
(a) of Section 1 of Act No. 166 of June 29, 1968, as amended, in order to provide that all pensioners entitled to claim the tax exemption on pensions received shall submit their birth certificates only in the first year when said benefit is claimed.
Puerto Rico is a country with a large labor production, where the working class eagerly strives to achieve its goals and to build a better future for its families. These persons have dedicated their lives to their work and in most cases have sacrificed the quality time shared with those closest to them in order to offer better services to society.
At present, we can see that, thanks to their work performance, they were able to occupy high level positions thus allowing Puerto Rico to hold an important place with respect to the economy and development of our country. Social evolution and professional growth have permitted these workers to become the force behind this economic development and progress. Pensioners have distinguished themselves throughout their professional careers in different areas of the working world, leaving their footprints for those others who shall join the working class to follow. At present, these persons who contributed their knowledge and efforts are going through other phases of their lives in which their experiences may help those who wish to contribute to society.
Act No. 166 of June, 1968, as amended, which grants a tax exemption on pensions acknowledges the contribution of the working class, those people who have placed our country at such a high competitive level. The Legislature deems it necessary to adopt this measure so that the pensioners may exercise the right granted in the aforementioned Act without having to present their birth certificate each time they claim the exemption, in order to expedite the administrative process.
Section 1.- Subsection
(a) of Section 1 of Act No. 166 of June 29, 1968, as amended, is hereby amended to read as follows: "Section 1.- Pensioners of $800 (sic) per annum or less
(a) The first eight thousand $(8,000)$ dollars of the annual total of all pensions granted or to be granted in the future by the retirement systems or funds subsidized by the Commonwealth of Puerto Rico, and up to the same amount for the annuities or pensions granted or to be granted by the Government of the United States of America, the instrumentalities or political subdivisions of both governments and by employers of private firms, are hereby exempted from all types of taxes, except that in the case of pensions granted or to be granted by the retirement systems or funds mentioned above to pensioners who are sixty (60) years of age or more, the amount exempted from taxes shall be eleven thousand $(11,000)$ dollars annually. Provided, that the pensioner that claims the right to the tax exemption granted on the pensions shall submit his/her birth certificate only when claiming the exemption for the first time.
Every pensioners or person receiving an annuity whose sole income corresponds to that pension or annuity, if it is equal to or less
than the amount exempted from taxes by this Act is hereby released from paying taxes."
Section 2.- This Act shall take effect immediately after its approval, but its provisions shall apply in the taxable years beginning after December 31, 2003.
I hereby certify to the Secretary of State that the following Act No. 459 (S.B. 2365) of the $7^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend subsection
(a) of Section 1 of Act No. 166 of June 29, 1968, as amended, in order to provide that all pensioners entitled to claim the tax exemption on pensions received shall submit their birth certificates only in the first year when said benefit is claimed, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $29^{ ext {th }}$ of May of 2007.
Francisco J. Domenech Director