Pr Company Income Tax

---
name: pr-company-income-tax
description: "Puerto Rico regular company income tax reference based on the official legislative-library code revised in May 2026. Separates the normal tax base from the surtax base, sets out the graduated surtax and controlled-group deduction allocation, and explains why alternative minimum tax requires its own calculation. Includes worked examples and the statutory return and payment framework. Identifies special-decree deadlines and financial-statement requirements without treating every company as an ordinary corporation. Later amendments, current administrative filing instructions, incentives, losses, credits and independent accountant review remain outstanding. This source-cited draft does not establish comprehensive Puerto Rico coverage."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/pr-company-income-tax"
  jurisdiction: "PR"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Puerto Rico: regular company income tax

## Scope and source currency

This Guide uses the government legislative library's [Internal Revenue Code, revised 28 May 2026](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf). It covers the regular-corporation calculation, not an exemption decree or every entity election. The May revision is not proof that every later amendment is incorporated. Current Hacienda instructions could not be downloaded during this research; statutory deadlines below must be checked against year-specific relief before filing.

Section 1022.01(c) excludes specified special corporations, partnerships, certain LLCs and foreign corporations not engaged in a local trade or business from its definition of regular corporation. Entity classification and elections must be established before using these rates. [Sections 1022.01–1022.02](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

## Normal tax and surtax use different bases

For years beginning after 31 December 2018, the normal rate is **18.5%**. Its base is net income less the section 1033.19(a) dividends deduction. For a foreign corporation engaged in a Puerto Rico trade or business, section 1022.01(a) refers to income effectively connected with that business. This is not a tax on gross sales. [Section 1022.01](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

The surtax base is normal-tax net income less the applicable **USD 25,000 surtax deduction**. That deduction does not reduce the normal-tax base. For controlled-group members, section 1022.02(e) divides the allowance among members or permits an agreed allocation subject to the statutory total. A company cannot assume it gets a separate USD 25,000 simply because it files its own return. Short-year rules appear in subsection (f). [Section 1022.02(a), (d)–(f)](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

| Surtax base S (USD) | Surtax |
|---|---|
| Up to 75,000 | 5% of S |
| Above 75,000 to 125,000 | 3,750 + 15% of excess over 75,000 |
| Above 125,000 to 175,000 | 11,250 + 16% of excess over 125,000 |
| Above 175,000 to 225,000 | 19,250 + 17% of excess over 175,000 |
| Above 225,000 to 275,000 | 27,750 + 18% of excess over 225,000 |
| Above 275,000 | 36,750 + 19% of excess over 275,000 |

Source: [section 1022.02(b)(2), PDF page 48](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf), visually checked. Do not select the older 2011–2013 table printed above it. The top combined marginal rate is 37.5%; it is not a flat rate on all profit.

## Examples before minimum tax and credits

Assume an ordinary standalone corporation, a full USD 25,000 surtax deduction, no special-rate income and the following already determined normal-tax bases:

| Normal-tax base | Normal tax | Surtax base | Surtax | Combined regular tax |
|---:|---:|---:|---:|---:|
| 25,000 | 4,625 | 0 | 0 | 4,625 |
| 100,000 | 18,500 | 75,000 | 3,750 | 22,250 |
| 200,000 | 37,000 | 175,000 | 19,250 | 56,250 |
| 400,000 | 74,000 | 375,000 | 55,750 | 129,750 |

Amounts are USD. These calculations implement sections 1022.01–1022.02; they are not final assessed liabilities.

## Alternative minimum tax

Section 1022.03(a) imposes the excess, if any, of tentative minimum tax over regular tax. For years beginning after 31 December 2018, subsection (g) uses the greater of **USD 500** or the specified **18.5%** calculation on alternative minimum net income above the exempt amount, with the alternative foreign-tax-credit adjustment. Corporations within section 1061.15(a)(4) use **23%** instead. Alternative income, exemptions and adjustments are separately governed; accounting profit or the normal-tax base cannot simply be substituted. [Sections 1022.03(g), 1022.04 and 1022.05](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

If regular tax is USD 22,250 and a separately verified tentative minimum tax is USD 24,000, the additional AMT is USD 1,750, producing USD 24,000 before other adjustments. It is not USD 22,250 plus the entire USD 24,000. Conversely, a lower tentative amount adds no AMT under this excess calculation. [Section 1022.03(a)](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

## Returns, payment and financial statements

Section 1061.16 ordinarily requires calendar-year returns by **15 April** following year-end and fiscal-year returns by the **fifteenth day of the fourth month** after year-end. Its timely-requested filing extension is six months for years beginning after 2016. Weekends and holidays move the filing date to the next working day. Section 1061.16(e) separately sets sixth-month deadlines for specified corporate exemption-decree returns, and subsection (f) permits emergency changes. Do not apply the ordinary date to every decree holder. [Section 1061.16](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

Section 1061.17 separately governs payment and extensions to pay. A filing extension alone is not a payment extension. Estimated payments and year-specific electronic submission procedures remain to be reconciled with Hacienda's current instructions. [Sections 1061.16–1061.17](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

Section 1061.15(a)(4) requires the prescribed audited financial statements when annual business volume is **USD 10 million or more**, with an auditor licensed in Puerto Rico. Lower-volume and related-group provisions in the same section have their own options and requirements. The threshold cannot be checked solely against one entity while ignoring the related-group rules in subsection (a)(5). [Section 1061.15](https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/C%C3%B3digos/1-2011/1-2011.pdf).

## Remaining review

Checked 22 October 2026. Complete the post-May amendment audit, obtain current filing circulars and forms, and cover losses, incentives, credits, distributions, withholding, related parties and enforcement. No independent accountant review has occurred. These company-tax rules do not settle municipal, sales/use, property, payroll or federal obligations.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `pr-company-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/pr-company-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.