Dividend Income

Location of Payer

The source of income from dividends is determined by the location of the payer. Dividends from corporations located:

• In the U.S. are U.S. source income
• In Puerto Rico are Puerto Rico source income
• Anywhere else are foreign source income

Capital Gain Distributions

The source of income of capital gains distributions received by residents of Puerto Rico from a U.S. regulated investment company (RIC) is considered Puerto Rico source income that is exempt from U.S. tax under Section 933.