Law 40 of 2013, the Tax Burden Redistribution and Adjustment Act (Ley de redistribución y ajuste de la carga contributiva), amended section 1033.17(a) of the Tax Code 2011 by disallowing various deductions. The following are now regarded as non-deductible expenses:
|-||expenses related to the use, maintenance and depreciation of residential property located outside Puerto Rico;|
|-||expenses related to the ownership, use, maintenance and depreciation of automobiles (with exceptions);|
|-||a percentage of the following payments made abroad if such expenses are not subject to income tax in Puerto Rico (provided that such income is not exempt under a tax incentive act or any other law granting income tax exemptions):
|-||gross recipients tax applicable as part of the tentative minimum tax (TMT) computation (further information regarding the TMT and the gross recipients tax will be provided subsequently).|
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