The Ultimate Act 60 Compliance Checklist for 2026

At the heart of maintaining your Act 60 decree are the core residency requirements. The bona fide residency test is a critical component, requiring you to establish a genuine connection to Puerto Rico. This goes beyond simply owning property; it involves demonstrating that your primary home and social, familial, and economic ties are in Puerto Rico. The 183-day rule is a strict requirement, mandating your physical presence on the island for at least half the year. The IRS scrutinizes this closely, so meticulous record-keeping of your travel days is essential. Finally, establishing a tax home in Puerto Rico means it is your principal place of business or employment. These three pillars form the foundation of your Act 60 status and are non-negotiable for ongoing compliance.

The 2026 tax year is filled with important deadlines that Act 60 decree holders cannot afford to miss. Based on the Grant Thornton 2026 Tax Calendar, the individual income tax return (Form 482.0) is due on April 15, 2026, with a 6-month extension available. The Exempt Annual Report, a crucial filing for all Act 60 beneficiaries, has a deadline that can vary, but is often tied to your income tax return filing date. For many, this means the report is due 30 days after filing their income tax return. Estimated tax payments are due quarterly on April 15, June 15, September 15, and January 15 of the following year. Missing these deadlines can result in significant penalties and interest, so it is imperative to mark your calendar and prepare in advance.

A significant part of Act 60 compliance is the proper and timely filing of numerous forms. The most important of these is Form 482.0, the Puerto Rico Individual Income Tax Return. This is where you report your income and calculate your tax liability under the benefits of Act 60. The Exempt Annual Report, filed with the Department of Economic Development and Commerce (DDEC), is another critical document. This report details your compliance with the terms of your decree, including employment and investment commitments. Other forms you may encounter include Form 480.E-1 for estimated tax payments and various informative returns. Maintaining organized records to support the information on these forms is just as important as the filings themselves.

A key provision of Act 60 is the requirement for individual investors to make an annual donation of at least $10,000 to one or more registered non-profit organizations in Puerto Rico. This donation must be made to an organization that is certified by the Puerto Rico Treasury Department. It is not enough to simply write a check; you must obtain a proper receipt from the organization for your records. This requirement is a way for Act 60 beneficiaries to contribute to the local community and is a mandatory part of maintaining your decree. Failure to make the required donation can lead to the revocation of your tax incentives.