P.R. Laws tit. 23, § 6348
(a) Except as otherwise provided in this chapter, the Director shall be in charge of administering this chapter and shall exercise the powers, perform the duties, and comply with the obligations imposed thereunder. The Director shall be the official responsible for overseeing that exempt businesses meet the eligibility requirements of this chapter. In accordance with the provisions of §§ 6339 and 6340 of this title, the Director shall be responsible for issuing the Certificate of Compliance to exempt businesses so that the latter may avail themselves of the benefits or incentives provided herein.
The Secretary of the Department of the Treasury, the Executive Director of the Municipal Revenues Collection Center (CRIM), or any other government official or body, or public corporation concerned with any of the benefits or incentives granted under this chapter shall be only required to grant the benefit or incentive in question upon the issuance of a valid Certificate of Compliance, as provided in § 6340 of this title.
(b) During the effective term of this chapter, all other fiscal laws, including, but not limited to, the Tourist Development Act of 1993, the Code, the Municipal License Fees Act, and any laws related to real and personal property taxes shall continue to be in effect with respect to exempt businesses (except when manifestly incompatible with this chapter), including, but not limited to, the requirement to file tax returns, to render reports, to pay taxes, to pay the room occupancy rate tax and the procedures related to the assessment, imposition, and collection of levies and taxes. Exempt businesses shall be required to maintain a separate accounting of the tourist activity; Provided, further, That the taxes on tourism development income shall be computed separately. The Director is hereby authorized to impose by regulations or otherwise any conditions with respect to the enjoyment of any exemption or benefit under this chapter, when such conditions are necessary to ensure the proper compliance with the terms and purposes under which the exemption or benefit is being granted. The requirements imposed by the Director may include, among others: the requirement to file tax return or reports; the keeping of accounting books and records; the furnishing of any document or evidence deemed pertinent to the exemption or benefit; the posting of bonds; the granting of permits to conduct periodical or other inspections; and the previous filing of contracts, orders, or other information related to the permits to acquire, transfer, sell, or introduce exempt items under § 6342(a)(4) of this title.
(c) Any person who has established or who intends to establish in Puerto Rico an eligible business may file with the Director an application for a grant under this chapter. The approval of a grant under this chapter shall be conditioned to the presentation to the Director by the eligible business of no outstanding debt certificates from the Departments of the Treasury and of Labor and Human Resources, the State Insurance Fund, and the Municipal Revenue Collection Center (CRIM). Furthermore, the applicant must provide proof that he/she has no balance pending payment on the room occupancy rate. The eligible business shall submit to the Director any additional documents or permits as the Director may require by regulations.
(1) The applicant shall file his/her application with the Secretary and the Director. The Director shall evaluate the application to determine whether the same includes all documents required under this chapter and any additional documents and/or permit as the Director may require by regulation, and he/she shall send notice to the applicant within sixty (60) days after having received the application. In such notice, the Director shall inform the applicant whether his/her application has been duly completed. If the Director determines that the application has not been duly completed, the Director shall include in such notice to the applicant a detailed explanation of the necessary documents and/or permits in order for the application to be deemed to have been properly filed. If the Director fails to send a notice to the applicant within thirty (30) days after the date in which the application was filed with the Director, it shall be understood that the Director has determined that the application has been properly filed.
(2) Once the Director determines that an application has been properly filed under this chapter, or if a period of sixty (60) days has elapsed and the Director has failed to send a notice to the applicant, the terms established in this section shall begin to run.
(3) The Secretary shall evaluate the application to ascertain compliance with the applicable tax laws or any other law that could be under the jurisdiction of the Secretary and he/she shall send his/her recommendation to the Director within sixty (60) days of filing a copy of the application with the Secretary. If the Secretary fails to submit his/her recommendations to the Director within the sixty (60)-day period as of the date of filing with the Secretary, it shall be deemed that the application has received a favorable recommendation from the Secretary. All unfavorable recommendations of the Secretary shall include the reasons for such recommendation.
(4) Once the favorable recommendation of the Secretary has been received, or the sixty (60) day period has elapsed and the Secretary’s recommendation has not been received, the Director shall have sixty (60) days to approve or deny the application. The Director shall issue a final determination in writing within a term not greater than one hundred twenty (120) days after the date on which the application was properly filed. If the application is approved, the Director shall issue a grant specifying the exemptions conferred and the terms and conditions that must be complied with in order to enjoy the grant.
(5) If the Secretary’s recommendation is contrary to the decision of the Director, the Director may submit the case to the Governor for his/her evaluation and decision. The Governor’s decision shall be subject to the review procedures stated in § 6349 of this title.
(d) The exemption granted under subsection (c) of this section is conditioned by the exempt business compliance with the requirements established by regulations by the Puerto Rico Tourism Company. Said regulation shall establish the norms and criteria to require that the exempt business submit a promotion, advertising, and marketing plan of its tourist activities, according to the specific circumstances and needs of the eligible business in question.
(e) Any person who willingly makes or attempts to make on his/her own behalf or on behalf of a third party any false or fraudulent representation in relation to any application for or grant of benefits under this act shall be deemed to be guilty of a felony and upon conviction, shall be punished by a fine that shall not exceed ten thousand dollars ($10,000) or by imprisonment for a term that shall not exceed five (5) years, or both penalties, plus legal costs, in the discretion of the court.
History —July 10, 2010, No. 74, § 9; Nov. 17, 2015, No. 187, § 92.