Act 60

Puerto Rico Steps Up Act 60 Tax Compliance Enforcement

Puerto Rico has moved to tighten oversight of its Act 60 tax-incentive program. The Office of Business Incentives (OIN), part of the Department of Economic Development and Commerce (DDEC), audited nearly 1,800 holders of Act 60 decrees — including former Act 20 and Act 22 beneficiaries — in 2025. The government imposed stronger criminal background checks on new resident-investor decree applicants and instituted an annual reporting requirement across its incentive programs. Separately, the Puerto Rico House of Representatives passed a measure in April that would raise the tax rate to 4 percent on Puerto Rico-source capital gains, dividends, and interest for Act 60 beneficiaries. The steps reflect growing pressure to address concerns that the incentives have been abused while preserving their role in attracting investment.