Stay compliant with Act 60 tax filing deadlines in Puerto Rico to keep your valuable tax incentives. Learn key dates, annual fees, and filing requirements for individuals and businesses.

Act 60 is Puerto Rico’s incentives code, offering programs that give qualifying residents access to tax benefits such as exemptions on income, dividends, and more. To keep these benefits, staying compliant with all tax filing requirements is essential—missing a deadline can lead to penalties or even the loss of your incentives. In this article, we’ll cover the key filing deadlines, annual fees, and the potential consequences of non-compliance.

Deadline Breakdown

Here are the tax filing requirements under Act 60, separated for individual investors and businesses.

Individual Investors

For individual investors under Act 60, here’s what you need to know about filing deadlines:

• Annual Tax Return:
  • Due April 15 each year.
  • You can request an extension, but it only gives you more time to file—you must still pay taxes by April 15 to avoid penalties.
• EAR (Exempt Annual Report)
  • Due November 15 each year.
  • Extensions are typically allowed if your tax return was also extended.

The EAR confirms that you’ve met all Act 60 compliance requirements. It verifies your residency, shows that you’ve completed the charitable donation requirement, and includes basic personal information, proof of filing, and any financial statements required. The EAR is filed through the Department of Economic Development and Commerce (DDEC) portal.

Businesses

Under Act 60, businesses fall into different categories, each with its own filing deadlines:

• Corporations:
  • File tax returns by April 15.
  • EAR is due by November 15.

For pass-through entities (e.g., LLCs, partnerships), filing deadlines may differ from corporations. Consult a tax professional for exact dates based on your business structure.

Annual Fees & Charitable Donation Requirements

For individual investors under Act 60, the annual report filing fee is typically around $5,000. In addition, individual resident investors must make an annual charitable contribution of $10,000 to approved nonprofits in Puerto Rico as part of their compliance requirements.

For corporations and other businesses, the annual report filing fee is usually much lower, around $500. However, there is no set charitable donation requirement for businesses under Act 60.

Penalties for Noncompliance

Failing to meet your tax filing deadlines can lead to late fees, potential audits, and even the loss of your Act 60 tax benefits. For businesses, losing these benefits means facing much higher tax rates along with the loss of dividend and property tax exemptions, which can significantly increase operating costs and financial risk.

Tools & Portals for Filing

To file your taxes under Act 60, you’ll need access to the Puerto Rico Treasury Department (Hacienda). They provide an instruction manual (available in Spanish) with all the forms, filing procedures, and guidelines required to meet your deadlines.

• Tax returns: Filed through Hacienda’s SURI portal, where you can submit returns and pay any fees.
• EAR: As mentioned previously, this documentation is filed separately through the DDEC portal.

Some of the key forms to keep in mind include:

• Form 482 for individual income tax returns on exempt income
• Form 480.3(II) consolidated form for exempt business income

Tips for Staying Organized

To stay on top of tax deadlines and avoid missing any documentation, it helps to keep organized, detailed records throughout the year.

• Use spreadsheets to track key dates like tax return and EAR deadlines.
• Keep a folder of all documentation, including donation receipts, business receipts, proof of residency, and decree paperwork—both physical and digital copies.
• Save PDFs of payment confirmations and CPA reports for easy access.
• Consider using software with reminders to help you stay on schedule.
• Work with a CPA or attorney to minimize risks and ensure all filings are accurate and on time.

Final takeaway

Act 60 is a huge benefit to businesses and individual investors, offering valuable tax incentives, but it’s important to keep compliance top of mind and keep track of your deadlines, fees, and documentation. If you’re looking to explore how to make your transition to Puerto Rico seamless, we can provide support on your path to achieving Act 60 benefits—schedule a call with one of our experts and we can get started right away.