P.R. Laws tit. 23, § 6345
(a) Renegotiation. — All eligible businesses exempted under the Tourist Incentives Act of 1983, §§ 693 et seq. of this title, or the Puerto Rico Tourist Development Act of 1993, §§ 6001 et seq. of this title, may apply for the renegotiation of their exemption grant to avail themselves of the benefits granted under this chapter:
(1) If they comply with the requirements of this chapter, including, but not limited to, the substantial exemption or renovation referred to in § 6341(ee) of this title and any other condition as may be imposed by the Director in the exercise of his/her powers under this chapter;
(2) if with the previous favorable recommendation of the Secretary, the Director determines that the renegotiation of such exemption decree shall serve the best social and economic interests of Puerto Rico, and
(3) if there is a waiver so as to revoke the tax exemption grant approved for such eligible business under the Puerto Rico Tourist Development Act of 1993, §§ 6001 et seq. of this title.
(b) Effective term of the renegotiated exemption decree.— All eligible businesses that have availed themselves of the option under subsection (a) of this section shall enjoy the benefits of this chapter for the period established under this chapter.
(c) Profit distribution.— When an eligible business that chose to renegotiate its tax exemption decree or resolution distributes its profits accrued under its previous exemption decree after the effective date of the grant, such distribution shall be made pursuant to the provisions of the exemption grant conferred under the Puerto Rico Tourist Development Act of 1983, as amended, or the Puerto Rico Tourist Development Act of 1993, §§ 6001 et seq. of this title.
(d) Distributions in liquidation.— All eligible businesses that choose to renegotiate their tax exemption decree or resolution shall pay taxes at the time of their total liquidation with respect to their tourism development income pursuant to the provisions of this chapter, and with respect to income accrued before the effective date of the grant pursuant to the provisions of the exemption decree or resolution approved under the Puerto Rico Tourist Development Act of 1983, as amended, or the Puerto Rico Tourist Development Act of 1993, §§ 6001 fo this title.
(e) Net operating losses.— All net operating losses sustained by an exempt business during the period that it operated under a tax exemption grant or resolution conferred under the Puerto Rico Tourist Development Act of 1993, §§ 6001 et seq. of this title, shall be divided into exempt losses and non-exempt losses. After making this division, non-exempt losses may be used as provided in § 6342(a)(1)(H)(i) of this title; the exempt losses may be used, as provided in § 6342(a)(1)(H)(ii) and (iii)(I) of this title. The losses generated in one year in which a choice similar to that which is provided in § 6342(a)(1)(D) of this title is in effect, such losses may be used as provided in § 6342(a)(1)(H)(iii)(II) of this title.
History —July 10, 2010, No. 74, § 6.