Act 22 Compliance Checklist: Stay on Track and Protect Your Tax Benefits
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 📌 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: We’re here to help you navigate Act 22 and ensure you remain compliant while maximizing your benefits!