Puerto Rico’s Act 22 (now part of Act 60) provides significant tax benefits to Resident Individual Investors. However, these benefits come with strict compliance requirements. Failing to meet these obligations can result in revocation of benefits and financial penalties. Below is a checklist to help ensure you stay in compliance and continue enjoying the benefits of your decree.
✅ Act 22 / Act 60 Compliance Checklist
🗓️ Yearly Compliance Tasks
| Task | Due Date | Notes | Completed |
|---|---|---|---|
| Submit Annual Report to OITE & PR Treasury | 30 days after tax filing deadline | Required for compliance. Missing this can cause revocation. | ☐ |
| Make $5,000 Charitable Contribution to a Puerto Rico Nonprofit | Before filing annual report | Must be Puerto Rico-based and not controlled by you. Keep receipt as proof. | ☐ |
| Maintain Bona Fide Puerto Rico Residency | Ongoing (183+ days/year) | Track travel days to ensure 183+ days in Puerto Rico yearly. | ☐ |
| Report All Required Financial Information Accurately | Ongoing | Misreporting can result in revocation & penalties. | ☐ |
📝 One-Time / As-Needed Compliance Tasks
| Task | Due Date | Notes | Completed |
| File IRS Form 8898 (if previously a U.S. resident) | First year only, by U.S. tax deadline | Confirms move to Puerto Rico. Missing this may trigger U.S. tax issues. | ☐ |
| Notify OITE if Residency Changes | Within 30 days of moving | If you leave PR, you lose tax benefits. Must send written notice. | ☐ |
| Ensure Grant Acceptance is Notarized & Filed | 90 days after receiving the decree | Failure to do this will make the grant retroactively null & void. | ☐ |
| Review Grant Terms & Act 22 Compliance Rules | Annually | Stay updated on any legal changes affecting your benefits. | ☐ |
⛔ Red Flags That May Lead to Revocation
- Missing the annual report deadline → Risk: Loss of tax benefits
- Not donating $5,000 annually → Risk: Possible penalties & revocation
- Spending fewer than 183 days in PR → Risk: Loss of residency & back taxes
- Misreporting finances → Risk: Fines, penalties, or audit
- Failing to notify OITE if you move → Risk: Retroactive taxation
📌 Best Practices
✔ Set calendar reminders for key deadlines. 📅
✔ Keep records of donations, filings & travel days for audits. 🗂️
✔ Consult and reach out to us yearly for updates. 🏛️
✔ Double-check that all filings are accurate before submission. ✅
⚠️ Important Caveat
Each Act 22 decree is a separate contract with the government, meaning that specific terms and obligations may vary. Please review your individual decree to ensure full compliance. If you would like us to review your case or prepare a customized compliance plan for you, don’t hesitate to reach out to our office
📞 Contact Us
For assistance with Act 22 compliance or to schedule a consultation, feel free to reach out to us:
- 📧 Email: [email protected]
- 📞 Phone: 787-473-8985
- 🌐 Website: www.bonnllc.com
We’re here to help you navigate Act 22 and ensure you remain compliant while maximizing your benefits!