A withholding of income tax at source is required to be made on payments of interest, rent, salaries, wages, participation in partnership profits, commissions, premiums, annuities, remuneration, compensation, dividends, or other fixed or determinable, annual or periodical gains, profits and income (but only to the extent that any of the items constitute gross income from sources within Puerto Rico) to nonresident individuals, or nonresidents fiduciaries, or foreign corporations and foreign partnerships, not engaged in trade or business within Puerto Rico. The payor of these items of income must withhold and deduct a tax thereon at the following rates:

Nonresident individuals, citizens of the United States (except on dividends and interest paid to a unrelated person- see below). No withholding is required on items of income that are effectively connected with the conduct of a Puerto Rico trade or business, except compensation for personal services. 20%
Nonresident alien individuals (non US citizens) (except on dividends and interest paid to a related person – see below). No withholding is required on items of income that are effectively connected with the conduct of a Puerto Rico trade or business, except compensation for personal services. 29%
Foreign corporations and partnerships not engaged in trade or business within Puerto Rico (except on dividends and interest paid to an unrelated person – see below). 29%
Dividend payments to foreign corporations and partnerships by nonresident U.S. citizens and nonresident alien individuals not engaged in trade or business within Puerto Rico. 10%
Interest paid to unrelated persons that are nonresidents, U.S. citizens, nonresident alien individuals, foreign corporations and partnerships  not engaged in trade business within Puerto Rico.    0%
Gain from the sale of real property located in Puerto Rico and gain from sale of stocks (provided that the gain is Puerto Rico source income) derived by nonresident aliens or foreign corporations and partnerships not engaged in trade business within Puerto Rico. 25%
Distributable share of partnership’s income if the partner is an individual, estate or trust. 30%
Distributable share of partnership’s income if the partner is a corporation. 30%
Distributable share of special partnership’s income if the partner is a foreign corporation not engaged in a Puerto Rico trade or business. 29%
Distributable share of special partnership’s estimated net income if the partner is a nonresident U.S citizen. 30%
Distributable share of special partnership’s income if the partner is a nonresident alien individual, estate or trust. 33%
Proportional share of the estimated net income of a corporation of individuals if the shareholder is U.S citizen. 30%
Proportional share of the estimated net income of a corporation of individuals if the shareholder is a nonresident alien individual, estate or trust. 33%

Certain other exceptions and special rules apply.