Puerto Rico Tax Glossary: Spanish Tax Terms from A to Z

Taxes have their own vocabulary, and in Puerto Rico you will see a mix of terms from the Departamento de Hacienda (Puerto Rico's Treasury Department, "Hacienda"), CRIM (Municipal Revenue Collection Center), the municipalities and the IRS. This glossary brings together the ones you will see most often, in alphabetical order by their Spanish name, with an English translation. The definitions are general and do not replace the text of the law. To see which form each number refers to, check the list of forms, and for dates, the tax calendar.

A

Adición a la contribución (addition to tax)

An amount the Código de Rentas Internas (Internal Revenue Code of Puerto Rico) adds to the tax as a penalty for not complying. For example, if you file your return late without reasonable cause, 5% to 25% of the tax owed is added (Section 6030.11). See interest, surcharges and penalties.

Agente retenedor (withholding agent)

A person or entity required to withhold part of a payment and send it to Hacienda, such as an employer with wages or a business that pays for services. It is answerable to Hacienda for what it should have withheld.

Ajuste gradual (gradual adjustment)

An increase to the regular tax of individuals with net taxable income of more than $500,000: 5% of the excess, up to a cap. It is figured on Schedule P Individual (Anejo P Individuo) (Section 1021.01(b)).

Amnistía contributiva (tax amnesty)

A temporary program, created by law, that forgives all or part of the interest, surcharges or penalties if you pay a debt within a set period. There is no permanent amnesty. You have to check whether one is in effect.

Anejo (schedule)

An additional sheet attached to a return to detail part of the calculation, such as Schedule A Individual (deductions) or Schedule P Individual (gradual adjustment).

Año contributivo (tax year)

The twelve-month period for which tax is figured and reported. For most individuals, it is the calendar year, from January to December.

Año fiscal (fiscal year)

A twelve-month tax year that ends in a month other than December. Many corporations use it. For the Government of Puerto Rico, the fiscal year runs from July 1 to June 30.

Autotasación (self-assessment)

The taxpayer's own calculation of what they owe, for example on the CRIM personal property return or when the owner of a new property estimates its tax.

B

B2B (services between merchants)

Services that one merchant provides to another merchant (business to business). They are subject to a 4% IVU instead of 11.5% and do not pay the 1% municipal portion (Sections 4210.01(c) and 6080.14).

Base ajustada (adjusted basis)

What an asset or investment cost you, adjusted for improvements, depreciation or other changes. It is used to figure the gain or loss when you sell it, or the owner's basis in a pass-through entity.

Boletín Informativo (Informative Bulletin)

A Hacienda publication that explains a procedure or a change in general terms, for example the payment methods accepted in SURI.

C

Carta Circular (Circular Letter)

An official Hacienda publication that gives instructions on how to comply with a provision, such as the dates and method for filing a given year's return. It is identified by a number, for example CC RI 26-02.

Causa razonable (reasonable cause)

A valid reason, beyond your control, that can relieve you of some penalties, such as the penalty for filing late. You have to prove it.

Certificación de deuda (debt certification)

A document from Hacienda or CRIM that shows whether you have outstanding debts. It is requested for government contracts, loans and permits. See Hacienda certifications.

Certificado de revendedor (reseller certificate)

A document Hacienda issues to a merchant to buy merchandise for resale without paying IVU on the purchase, because the IVU will be collected from the final consumer.

Cheque de alivio contributivo (tax relief check)

A direct payment authorized by Joint Resolution 6-2026 (Resolución Conjunta 6-2026) for certain taxpayers, based on their return for tax year 2025. Hacienda set its rules in Carta Circular de Rentas Internas Núm. 26-10.

Código de Incentivos (Incentives Code)

Ley 60-2019 (Act 60-2019), which brings together Puerto Rico's tax decrees and incentives, such as those for export services and resident investors. See the Act 60 guide.

Código de Rentas Internas de 2011 (Internal Revenue Code of 2011)

Ley 1-2011 (Act 1-2011), as amended. It is Puerto Rico's main tax law: income tax, IVU, excise taxes and Hacienda's procedures.

Código Municipal (Municipal Code)

Ley 107-2020 (Act 107-2020), which governs the municipalities, the municipal license tax and the property tax administered by CRIM.

Colecturía (collections office)

A collections office where you can make payments to the government. Many tax payments today are made online, through SURI.

Comerciante (merchant)

A person or business that sells goods or services subject to IVU. It must enroll in the Registro de Comerciantes (merchant registration) and collect and remit the tax.

Comprobante de retención (withholding statement)

Form 499R-2/W-2PR, which the employer gives the employee with the year's wages and the income tax, Social Security and Medicare withheld. It must be provided no later than January 31 (Section 1062.01(n)).

Contribución (tax)

The official term in Puerto Rico for a tax, especially income tax and property tax.

Contribución básica alterna (alternate basic tax)

An alternate calculation for individuals that limits the effect of certain deductions and exclusions. It is figured on Schedule O Individual when the net income subject to that tax is more than $25,000 (2025 Form 482 instructions).

Contribución determinada (tax liability)

The tax that results from the return before withholding and payments are subtracted. For the regular tax on individuals, it is 95% or 92% of the table amount plus the gradual adjustment (Section 1021.01(c)).

Contribución estimada (estimated tax)

Payments made during the year toward the tax you expect to owe when there is not enough withholding. Calendar-year individuals pay it on April 15, June 15, September 15 and January 15 (Section 1061.21).

Contribución opcional (optional tax)

A method that lets certain individuals with trade or business income or service income pay a tax on gross income instead of using the regular table (Section 1021.06, Schedule X Individual). See self-employed workers.

Contribución regular (regular tax)

Income tax figured with the table in Section 1021.01. You can estimate it with the income tax calculator.

Contribución sobre el trabajo por cuenta propia (self-employment tax)

The federal Social Security and Medicare tax (self-employment tax) paid by people who work for themselves, including Puerto Rico residents, on Form 1040-SS. See the self-employment tax calculator.

Contribución sobre ingresos (income tax)

The tax on the income of individuals, corporations, estates and trusts, administered by Hacienda.

Contribución sobre la propiedad inmueble (real property tax)

The tax on land and buildings that CRIM collects for the municipalities. It is paid by semester, on July 1 and January 1 (Municipal Code, Art. 7.059). See real property tax.

Contribución sobre la propiedad mueble (personal property tax)

The tax businesses pay on equipment, machinery, inventory and other personal property, through an annual return filed with CRIM. See personal property tax.

Corporación (corporation)

A legal entity that pays tax on its own income on Form 480.2. See corporate income tax.

Corporación de individuos (corporation of individuals)

A corporation that has elected to have its shareholders pay the tax on their share of the income. It files an informative return (480.1(SC)).

Crédito contributivo (tax credit)

An amount subtracted directly from the tax, not from income. That is why it is worth more than a deduction of the same size. See tax credits.

Crédito por trabajo (earned income credit)

A Puerto Rico credit for people who work and have low or moderate income, similar to the federal Earned Income Tax Credit.

Crédito tributario adicional por hijos (Additional Child Tax Credit)

The refundable part of the federal child tax credit (Additional Child Tax Credit). Bona fide residents of Puerto Rico can claim it on Form 1040-SS since 2021, even if they have only one qualifying child. See child tax credit.

CRIM

Centro de Recaudación de Ingresos Municipales (Municipal Revenue Collection Center). It assesses and collects personal and real property tax on behalf of the municipalities.

Cuenta de retiro individual (IRA, individual retirement account)

A retirement savings account whose contributions may be deductible. Starting with tax year 2025, the Puerto Rico deduction limit rose from $5,000 to $7,000 per person (2025 Form 482 instructions).

D

DDEC

Departamento de Desarrollo Económico y Comercio (Department of Economic Development and Commerce). It evaluates and grants Act 60 decrees and receives their annual reports.

Declaración de volumen de negocios (business volume declaration)

The annual declaration that every business subject to the municipal license tax files with the municipality. It is due no later than five business days after April 15 (Municipal Code, Art. 7.207). See municipal license tax.

Declaración informativa (informative return)

A form a payer files with Hacienda, with a copy to the recipient, to report payments made during the year, such as the 480.6 series. See informative returns 480.

Decreto (decree)

An agreement between the government and a business or individual, under Act 60 or another incentives law, that sets special rates or exemptions in exchange for meeting conditions.

Deducción (deduction)

An amount subtracted from income to arrive at net taxable income, such as mortgage interest or IRA contributions. See deductions and exemptions.

Deficiencia (deficiency)

The difference between the tax Hacienda determines you owed and the tax you reported. It is notified in writing and accrues 10% annual interest.

Departamento de Hacienda (Treasury Department)

The Government of Puerto Rico agency that administers income tax, IVU and excise taxes. Its highest authority is the Secretary of the Treasury (Secretario de Hacienda).

Dependiente (dependent)

A person for whom you can claim the dependent exemption, such as a child or a relative you support, if they meet the requirements of the Code.

Determinación Administrativa (Administrative Determination)

A Hacienda publication that sets a rule of general application or postpones deadlines, for example when there is an emergency.

E

Embargo (levy or garnishment)

A collection action in which Hacienda or CRIM seizes a debtor's property, accounts or wages. See Hacienda levies.

Entidad conducto (pass-through entity)

A partnership, limited liability company or other entity whose income is taxed in the hands of its owners, not the entity. It reports to the owners on Form 480.6 EC.

Entidad ignorada (disregarded entity)

A single-owner entity that, for tax purposes, is treated as if it did not exist. Its activity is reported on the owner's return.

Especialista en planillas (tax return preparer)

A person authorized by Hacienda to prepare returns, declarations or refund claims for pay. They must sign the returns they prepare.

Exención (exemption)

An amount or type of income that the law frees from tax, or a fixed amount subtracted per person, such as the personal exemption.

Exención personal (personal exemption)

A fixed amount subtracted from income when you figure your tax: $3,500 for an individual and $7,000 for married couples filing jointly in 2025 (Form 482 instructions).

Exención por dependientes (dependent exemption)

An amount subtracted for each dependent: $2,500 per dependent, or $1,250 in certain cases of shared custody or married people filing separately, in 2025.

Exoneración de residencia principal (primary residence exemption)

A CRIM benefit that exempts up to $15,000 of the assessed value of your primary residence from property tax (Municipal Code, Art. 7.035). See primary residence exemption.

Extranjero no residente (nonresident alien)

A person who is not a U.S. citizen and does not reside in Puerto Rico. If they are not engaged in a trade or business in Puerto Rico, their Puerto Rico–source income is generally taxed at 29% (2025 Form 482 instructions).

F

Fecha de vencimiento (due date)

The last day to file or pay without interest or penalties. If it falls on a Saturday, Sunday or holiday, it moves to the next business day (Section 1061.16(c)).

Fideicomiso (trust)

An arrangement in which one person manages property for the benefit of others. Some trusts pay their own tax, and others are reported to the grantor on Form 480.6 F.

Formulario 482 (Form 482)

Hacienda's Individual Income Tax Return (Planilla de Contribución sobre Ingresos de Individuos). It is filed electronically. See how to file your return.

Formulario 1040-SS (Form 1040-SS)

The federal self-employment tax return for residents of the territories, including Puerto Rico. It replaced Form 1040-PR starting with tax year 2023.

Formulario 8898 (Form 8898)

A federal statement for people who begin or end bona fide residence in a territory such as Puerto Rico. See moving to or from Puerto Rico.

G

Ganancia de capital (capital gain)

The gain from selling a capital asset, such as stock or real estate, for more than its adjusted basis. If it was held long term, it may be taxed at a preferential rate.

Ganancia neta del trabajo por cuenta propia (net earnings from self-employment)

Business income minus business expenses, figured under federal rules. If it is $400 or more, you have to pay self-employment tax to the IRS.

Gravamen (lien)

The government's right over a property to secure a tax debt. CRIM property tax is a lien on the property (Municipal Code, Art. 7.057).

H

Hacienda Responde

The Departamento de Hacienda's telephone contact center, at (787) 622-0123, according to the 2025 Form 482 instructions. See how to contact Hacienda.

I

Impuesto sobre uso (use tax)

The part of the IVU paid on items brought into Puerto Rico or used here without having paid sales tax, such as imported merchandise.

Impuesto sobre ventas y uso (IVU, sales and use tax)

The tax on the sale and use of taxable goods and services. The general rate is 11.5%: 10.5% state and 1% municipal. See IVU and the IVU calculator.

Ingreso bruto (gross income)

All the income you receive from any source, before deductions, except what the law excludes or exempts.

Ingreso exento (exempt income)

Income that the law frees from tax, in whole or in part. It is reported on Schedule IE Individual and often on Form 480.6D.

Ingreso neto sujeto a contribución (net taxable income)

The income left after subtracting deductions and exemptions. The tax table is applied to that amount.

Interés (interest)

A 10% annual charge that Hacienda collects on unpaid tax from the due date (Section 6030.02). CRIM also charges 10% annual interest on past-due property tax.

Inversionista residente (resident investor)

A person who moves to Puerto Rico and obtains an Act 60 decree with special rates on certain passive income. See resident individual investor.

IRS

The Internal Revenue Service, the federal tax agency. Puerto Rico residents deal with the IRS for self-employment Social Security tax, income from sources outside Puerto Rico and certain credits. See Puerto Rico residents and the IRS.

IVU municipal (municipal IVU)

The 1% of the IVU that goes to the municipalities (Section 6080.14). Starting with the July 2026 return, 73 municipalities receive it through SURI on Form SC 2915. Bayamón, Carolina, Guaynabo, Mayagüez and San Juan collect it directly (CC RI 26-13).

L

Ley 52-2022 (Act 52-2022)

A law that amended the Internal Revenue Code and the Incentives Code in 2022, with changes to business taxes, decrees and other topics.

Ley 60-2019 (Act 60-2019)

See Código de Incentivos.

M

Medicare

A federal health program. Self-employed workers pay 2.9% of their taxable base for Medicare, with no cap.

Moroso (delinquent)

Not paid on time. Real property tax becomes delinquent if it is not paid within 90 days after its due date (Municipal Code, Art. 7.059).

N

No residente (nonresident)

An individual who does not reside in Puerto Rico. In general, they pay tax to Hacienda only on their Puerto Rico–source income. See tax residency.

Notificación de deficiencia (deficiency notice)

A letter in which Hacienda tells you that, based on its review, you owe more tax. You have 30 days to request reconsideration (Section 6010.02). See Hacienda notices.

Número de identificación patronal (employer identification number)

The federal number that identifies an employer or business (Employer Identification Number, EIN). Many Hacienda forms also ask for it.

P

Paga atrasada (back pay)

Wages from prior years received in the current year for reasons such as the employer's bankruptcy or a lawsuit. If it is more than 15% of the year's gross income, it can be figured with Form SC 2668.

Patente municipal (municipal license tax)

A tax each municipality charges on the business volume of those who do business within its boundaries. It is paid by semester, with a 5% discount if it is paid in full when you file the declaration (Municipal Code, Art. 7.208).

Patrono (employer)

A person or business that pays wages. It must withhold income tax, Social Security and Medicare, and file returns and informative returns. See employer obligations.

Penalidad (penalty)

A financial sanction or, in serious cases, a criminal one, for failing to meet a tax obligation.

Pérdida (loss)

The negative result of a business or of the sale of an asset. Some losses can be carried forward to later years.

Plan de pago (payment plan)

An agreement to pay a tax debt in installments. Interest keeps running as long as there is a balance. See payment plans.

Planilla (return)

The document in which you report your income, deductions and tax, or the taxes you collected, to Hacienda, CRIM, the municipality or the IRS.

Planilla conjunta (joint return)

A return filed together by married spouses who live together.

Planilla enmendada (amended return)

A return that corrects one already filed. See amended return.

Planilla mensual de IVU (monthly IVU return)

The return a merchant files in SURI each month, no later than the 20th of the following month (Section 4042.03). Since July 2026, it is Form SC 2915. See monthly IVU return.

Prescripción (statute of limitations)

The period after which the government can no longer assess or collect a tax. As a general rule, Hacienda has four years from when you filed your return to assess (Section 6010.05). See tax debts and the statute of limitations.

Procurador del Contribuyente (Taxpayer Advocate's office)

An office within Hacienda that helps taxpayers with problems that have not been resolved through normal channels. See taxpayer rights.

Propiedad inmueble (real property)

Land, houses, buildings and whatever is permanently attached to them.

Propiedad mueble (personal property)

Property that can be moved, such as equipment, machinery, business vehicles and inventory.

Prórroga (extension)

Additional time to file. Hacienda's automatic extension for individuals is six months and is requested with Form SC 2644 before the due date, but it does not extend the deadline to pay.

R

Radicar (to file)

To officially submit a return, declaration or document to an agency.

Recargo (surcharge)

An additional charge for paying late: 5% if the delay is more than 30 days but not more than 60, and 10% if it is more than 60 days (Section 6030.02(c)). Figure it with the interest and surcharges calculator.

Reconciliación anual (annual reconciliation)

A statement that summarizes what was withheld during the year and compares it with what was deposited, such as the employer's annual reconciliation due January 31.

Registro de Comerciantes (merchant registration)

The mandatory registration in SURI for those who sell goods or services subject to IVU. See merchant registration.

Reintegro (refund)

The return of tax you overpaid, for example when your withholding is more than your tax liability. See refunds.

Relevo de retención (withholding waiver)

Authorization from Hacienda for no withholding, or reduced withholding, on payments for services to a person who meets certain requirements.

Residencia bona fide (bona fide residence)

Status as a resident of Puerto Rico for federal purposes, under Section 937 of the federal Internal Revenue Code: the presence test, the tax home test and the closer connection test.

Residente (resident)

For Hacienda, an individual domiciled in Puerto Rico. A resident is taxed on income from all sources.

Retención en el origen (withholding at source)

The part of a payment that the payer sets aside and sends to Hacienda, such as wage withholding or the 10% on payments for services (Section 1062.03).

Revisión administrativa (administrative review)

The process for disputing a Hacienda determination, such as a deficiency notice, with the agency before going to court.

S

Secretario de Hacienda (Secretary of the Treasury)

The head of the Departamento de Hacienda, with authority to issue regulations, circular letters and determinations.

Sección 933 (Section 933)

A federal provision that excludes from income, for the federal return, the Puerto Rico–source income of a bona fide resident of Puerto Rico.

Seguro Social (Social Security)

The federal retirement, disability and survivors program. Self-employed workers pay 12.4% of their base up to a cap: $176,100 in 2025 and $184,500 in 2026 (SSA).

Servicios profesionales designados (designated professional services)

Legal services and services of certain regulated professions, such as CPAs, engineers, architects, agronomists, real estate brokers and tax return preparers. They are subject to a 4% IVU, unless the provider has a business volume of $200,000 or less (Section 4010.01(ll)).

Sociedad (partnership)

An entity formed by two or more partners. It can be taxed as a pass-through entity. See partnerships and LLCs.

SURI

Sistema Unificado de Rentas Internas (Unified Internal Revenue System), Hacienda's online platform for filing returns, paying and managing accounts.

T

Tabla de contribución (tax rate table)

The scale of rates applied to net taxable income. For individuals, it ranges from 0% to 33% (Section 1021.01). See tax rates.

Tasa efectiva (effective rate)

Tax divided by income. It is the average percentage you pay.

Tasa marginal (marginal rate)

The rate that applies to your last dollar of income. It tells you how much you would pay on each additional dollar.

Tasación (assessment)

CRIM's valuation of a property, or Hacienda's official determination of a tax.

Tasas preferenciales (preferential rates)

Special rates, lower than the table rates, for certain income such as interest, dividends and long-term capital gains. They are figured on Schedule A2 Individual.

Trabajador por cuenta propia (self-employed worker)

A person who works for themselves, without an employer. They pay tax to Hacienda and self-employment tax to the IRS.

V

Valor tasado (assessed value)

The value CRIM assigns to a property to figure the tax. The Municipal Code refers to 1957 replacement costs as the last scientific assessment performed (Art. 7.035), so the assessed value is usually much lower than the market value.

Volumen de negocios (business volume)

A business's total gross receipts, before expenses. It is the base for the municipal license tax and for some IVU thresholds.

787TAX is an independent guide. It is not Puerto Rico's Departamento de Hacienda, the CRIM or the IRS. This page is general information, not tax or legal advice. Example figures are hypothetical. Found an error? Tell us.