(a) An affiliated group.— For purposes of this part an 'affiliated group' means:(1) A controlled group of corporations, as such term is defined in § 30044 of this title, or(2) one or more chains of corporations connected through stock ownership with a common parent corporation, if:(A) The parent corporation owns directly stock with at least fifty percent (50%) of the total voting power of the stock of such corporation or stock is owned directly by at least one (1) of the corporations within the group of corporations.(B) For each of the corporations within the group, other corporation within such group owns fifty percent (50%) or more of the voting stock or the total value of all classes of stock of such corporation.(b) Related party.— A person shall be considered as a taxpayer’s 'related party' if such person is:(1) A component member of a controlled group of corporations, as such term is defined in § 30044 of this title, except that, for these purposes, subsection (b)(2) of such section shall not be taken into account to exclude corporations described therein; or(2) a corporation in which the taxpayer owns directly or indirectly fifty percent (50%) or more of the value of the ection shall not be taken into account to exclude corporations described therein; or(2) a corporation in which the taxpayer owns directly or indirectly fifty percent (50%) or more of the value of the stock of such corporation; or(3) a corporation that owns directly or indirectly fifty percent (50%) or more of the value of its stock; or(4) A corporation in which fifty percent (50%) or more of the value of its stocks is owned by a person who also owns, directly or indirectly, fifty percent (50%) or more of the value of the stock of the taxpayer; or(5) a brother or sister (whether by the whole or half blood), the spouse, ancestor or lineal descendant. History —Jan. 31, 2011, No. 1, § 1010.05, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 6.
Puerto Rico Legal Code