[20001030]RS20718_波多黎各的美国联邦税.pdf

1 Section 933 makes an exception for federal employees in Puerto Rico, and subjects them tofederal tax. However, U.S. citizens who pay tax to Puerto Rico including, for example, mainlandresidents with Puerto Rican income and U.S. federal employees in Puerto Rico are permitted to(continued.)Congressional Research Service ? The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20718October 30, 2000U.S. Federal Taxes in Puerto RicoDavid L. BrumbaughSpecialist in Public FinanceGovernment and Finance DivisionSummaryU.S. federal taxes generally do not apply to individuals in Puerto Rico, with the exceptionof Social Security taxes. Instead, Puerto Rico levies its own taxes, at a level higher than thoseof most U.S. states, but lower than that of the federal government. For businesses, a partialfederal tax exemption is provided by the Puerto Rican economic activities credit and thepossessions tax credit under sections 30A and 936 of the Internal Revenue Code. Puerto Ricoitself provides a set of partial tax exemptions that are designed to complement the special federalcorporate tax benefit. However, under federal legislation enacted in 1996, the credits arecu