Check Your Act 60 S-Corp Tax Compliance in Minutes

The main benefit of using an S-Corp with Act 60 is getting the 4% tax rate on export service income. But this only works if the income is genuinely earned in Puerto Rico. If your business has clients or operations in the U.S., you need to be careful about how you source your revenue. Getting this wrong is a major red flag. Our quick check is designed to analyze your income streams and flag potential sourcing conflicts that could put your decree at risk. It's a simple first step to ensure you're on the right track.

Did you set up a Puerto Rican S-Corp, or are you using one from your previous state? This choice has big consequences for your taxes and paperwork. A PR-based entity often makes Act 60 compliance more straightforward, but many entrepreneurs moving to the island continue using their existing U.S. S-Corp. While that can work, it adds complexity. DecreeCheck helps you understand the basic implications of your choice and whether it aligns with standard compliance practices, giving you a clear signal on whether a deeper look is needed.

Understanding how you get paid from your S-Corp is key. The money you take can be classified as salary, pass-through profits, or dividends, and each is taxed differently under Act 60. For instance, pass-through income from export services can get the 4% rate, while dividends are often tax-free. Confusing them can lead to overpaying taxes or, worse, non-compliance. Our tool quickly assesses how your distributions are structured to give you an instant snapshot of your situation, a process that has seen over 80% growth in adoption among savvy decree holders.