Comprehensive Act 60 Annual Report Filing Review

The annual report filed with the Puerto Rico Department of Economic Development and Commerce (DDEC) is the cornerstone of maintaining your Act 60 decree in good standing. This mandatory filing serves as the primary mechanism for the government to verify your ongoing compliance with the program's stringent requirements. Failure to file accurately and on time can jeopardize your entire tax incentive structure. Our comprehensive review process is designed to meticulously examine every aspect of your report, from financial statements to proof of residency, cross-referencing against the latest regulations and DDEC guidelines. We help identify potential red flags that could trigger an audit, ensuring your submission is robust and defensible. This proactive approach is essential, especially in light of increased IRS and Hacienda scrutiny, as highlighted in recent government reports like GAO-26-107225.

The Act 60 annual report requires a detailed compilation of information. This typically includes updated corporate or personal details, comprehensive descriptions of your eligible business activities, and, crucially, evidence supporting your bona fide residency in Puerto Rico. For businesses, this often involves submitting financial statements. If your business has a volume of business over $3 million, these must be certified by a Puerto Rico-licensed CPA. For others, a balance sheet prepared under GAAP is required. Our AI-powered review scrutinizes these documents for consistency and accuracy, comparing them against the information in your original decree. We also verify that you have met the annual $5,000 filing fee and other administrative requirements, which are often overlooked but critical for compliance.

The primary deadline for the annual report is typically April 15th, filed with the Puerto Rico Department of State. Missing this deadline or submitting an incomplete report can have severe consequences, ranging from hefty financial penalties to the full revocation of your tax decree. The DDEC and Hacienda are not lenient with non-compliance. Our service is designed to prevent these costly mistakes. By starting your review process with us well before the deadline, you afford yourself the time to correct any potential issues we identify. Our system flags missing documentation, inconsistencies in your data, and other common errors that lead to penalties. We provide a clear, actionable report, allowing you to file with confidence, knowing your submission has been vetted against hundreds of compliance rules.