If you hold an Act 20, 22, or 60 decree—some of Puerto Rico’s many tax incentive decrees—you will be required to file an annual report to the Department of Economic Development and Commerce (DDEC). The report is necessary to maintain compliance and remain in good standing with the DDEC. Note that this report is different from the annual LLC report—you will need to file both every year.

When to File the Report

The annual Act 60 report is due within 30 days of your income tax due date. Note that due to the COVID-19 pandemic, income tax due dates for 2020 have been pushed back—for most, taxes are now due July 15, 2020. If you have requested an extension for your income taxes, you will have until November 15, 2020, to file this year’s annual report.

Report Fee and Requirements

Like with the annual LLC report, Act 20, 22, and 60 decree holders are required to submit a payment along with their file. Previously, all decrees incurred an annual fee of $300, but the fee for Act 22 and Act 60 Individual Resident Investor decree holders was increased in 2020 to $5000. All grantees must provide evidence that they complied with the conditions laid out in their respective grant during the tax year for which they are filing the report.

Let PRelocate Handle Your Report for You

If you fail to submit your annual report, you may incur administrative fines and even lose your decree, so compliance is crucial. However, we understand that you may have more important things to deal with as you operate your business in the midst of this global health crisis. We would be happy to take this burden off your shoulders and file your annual report for you. We’ll just ask you for some information, and that’s all you have to do—we’ll take care of the rest.

Our fee for filing Act 22 and Act 60 Individual Resident Investor reports is $125. Our fee for Act 20 and Act 60 Export Services decree holders is also $125, unless we’re your qualified promoter—in that case, we can do it for free.

If you have any questions about the annual report or our services, don’t hesitate to email us at info@relocatepuertorico.com or call us at 787-503-8184.

Disclaimer: Neither PRelocate, LLC, nor any of its affiliates (together “PRelocate”) are law firms, and this is not legal advice. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Rico’s tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the “Materials”). Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction.