Spring 2003-05 Boats subject to excise tax

Number 51
Spring 2003

Boats subject to excise tax

The Puerto Rico Treasury Department issued Informative Bulletins Numbers 03-01 and 03-02 to clarify that excise taxes must be paid on boats introduced to or used in Puerto Rico.

The Internal Revenue Code establishes a 5% tax on price of the vessels.

The bulletins indicate that the person responsible for the payment of the tax is that to whom the boat is consigned directly, or such person as the Secretary of the Treasury determines is the economic beneficiary of the transaction. It is the responsibility of these taxpayers to prepare the corresponding excise tax declaration on the vessels introduced and to pay the corresponding tax. n

© 2003 Goldman Antonetti