[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.876-1]

[Page 366]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.876-1  Alien residents of Puerto Rico.

    (a) General. A nonresident alien individual who is a bona fide 
resident of Puerto Rico during the entire taxable year is, in accordance 
with the provisions of section 876, subject to tax under section 1 or, 
in the alternative, under section 1201(b) in generally the same manner 
as in the case of an alien resident of the United States. See paragraph 
(b) of Sec. 1.1-1 and Sec. 1.871-1. The tax is imposed upon the taxable 
income of such a resident of Puerto Rico, determined in accordance with 
section 63(a) and the regulations thereunder, from sources both within 
and without the United States, except that under the provisions of 
section 933 income derived from sources within Puerto Rico (other than 
amounts received for services performed as an employee of the United 
States or any agency thereof) is excluded from gross income. For 
determining the form of return to be used by such an individual, see 
section 6012 and the regulations thereunder.
    (b) Exceptions. Though subject to the tax imposed by section 1, a 
nonresident alien individual who is a bona fide resident of Puerto Rico 
during his entire taxable year shall nevertheless be treated as a 
nonresident alien individual for the purpose of many provisions of the 
Code relating to nonresident alien individuals. Thus, for example, such 
a resident of Puerto Rico is not allowed to determine his tax in 
accordance with the optional tax table (section 4(d)(1)); is not allowed 
the standard deduction (section 142(b)(1); is not allowed a deduction 
for a ``dependent'' who is a resident of Puerto Rico unless the 
dependent is a citizen of the United States (section 152 (b)(3)); is 
subject to withholding of tax at source under chapter 3 of the Code 
(sections 1441(e) and 1451(e)); is generally excepted from the 
collection of income tax at source on wages (paragraph (d)(1) of 
Sec. 31.3401(a)(6)-1 of this chapter (Employment Tax Regulations)); is 
not allowed to make a joint return or a joint declaration of estimated 
tax (sections 6013(a)(1) and 6015(b)); must pay his estimated income tax 
on or before the 15th day of the 4th month of the taxable year (sections 
6015(i)(3), 6073(a), and 6153(a)(1)); and generally must pay his income 
tax on or before the 15th day of the 6th month following the close of 
the taxable year (sections 6072(c) and 6151(a)).
    (c) Credits against tax. The credits allowed by section 31 (relating 
to tax withheld on wages), section 32 (relating to tax withheld at 
source on nonresident aliens), section 33 (relating to taxes of foreign 
countries), section 35 (relating to partially tax-exempt interest), 
section 38 (relating to investment in certain depreciable property), 
section 39 (relating to certain uses of gasoline and lubricating oil), 
and section 40 (relating to expenses of work incentive programs) shall 
be allowed against the tax determined in accordance with this section. 
No credit shall be allowed under section 37 in respect of retirement 
income.
    (d) Effective date. This section shall apply for taxable years 
beginning after December 31, 1966. For corresponding rules applicable to 
taxable years beginning before January 1, 1967, see 26 CFR 1.876-1 
(Revised as of January 1, 1971).

[T.D. 6500, 25 FR 11910, Nov. 26, 1960, as amended by T.D. 6777, 29 FR 
17819, Dec. 16, 1964; T.D. 7332, 39 FR 44229, Dec. 23, 1974]