"Effective for taxable years beginning on or after January 1, 2011, the 2011 PR Code now imposes a 10% excise tax on contributions in excess of the 2011 PR Code applicable limits ("Non-Deductible Contributions"). The 2011 PR Code includes an exception to the applicable percentage limitation on contributions, allowing a deduction for contributions up to the amount required to comply with the minimum funding standards [of ERISA] ... In A.D. 12-13, the PR Treasury has [clarified that] for Puerto Rico income tax purposes, a deduction for contributions made to a Puerto Rico qualified plan to comply with [ERISA] requirements would be allowed even if in excess of the applicable percentage limitation on contributions under Puerto Rico law. Consequently, such contributions would not be subject to the new 10% excise tax on non-deductible contributions."

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