Decree Annual Report (IANE) to DDEC: Deadlines and Fines

If you have a decree under Act 60-2019 or an earlier incentives law, such as Act 20 or Act 22 of 2012, you must file an exempt business annual report (informe anual de negocio exento) every year. The DDEC (Departamento de Desarrollo Económico y Comercio, Puerto Rico's economic development department) calls it the IANE. It is the main tool the Oficina de Incentivos para Negocios en Puerto Rico (OIN, the business incentives office) uses to check that you comply with your decree.

Several things changed in 2025 and 2026: there are new forms for every industry, automatic fines and a law that moves the report to the Hacienda return. This guide summarizes the rules in effect as of October 12, 2026.

What the annual report is and what it includes

Section 6020.10 of the Código de Incentivos (Puerto Rico Incentives Code) requires every exempt business to file a compliance report electronically with the Incentives Office each year. Under the text added by Act 52-2022, the report shows compliance with the decree's conditions in the prior year, for example:

• average employment;
• products manufactured or services provided;
• raw materials bought in Puerto Rico;
• professional, consulting, security or maintenance services contracted with companies in Puerto Rico;
• banking activity with institutions in Puerto Rico.

Resident investors. Their report must include evidence of the $10,000 annual donation and that they keep the primary residence they bought in Puerto Rico (Sections 2023.01(c), 6020.10(b) and (c)). We explain this in the guide for the resident individual investor.

What it is used for. DDEC uses the information for statistics and economic studies, and the Compliance Professional uses it every two years to grant or deny the Certificado de Cumplimiento (Compliance Certificate).

Until 2024, IANE forms existed for only five programs. In 2025, DDEC made forms available for all 20 programs in the Code, including physicians and "other industries." According to DDEC Bulletin 2026-005, between May 15, 2025 and January 30, 2026 it received 16,618 reports for 2024, compared with 6,358 for the prior year.

Deadlines for tax year 2025

Act 65-2025 provided that, for tax years beginning after December 31, 2024, the report would be filed with the Departamento de Hacienda (Puerto Rico's Treasury Department, "Hacienda") as part of the income tax return. But Hacienda and DDEC postponed that change with Determinación Administrativa (Administrative Determination) 26-01 of February 5, 2026. That is why the 2025 report is still filed in DDEC's Incentives Portal.

Under AD 26-01 and DDEC Bulletin 2026-005, the deadline for the 2025 IANE is the one stated in your decree:

Pass-through entities that did not request an extension at Hacienda also had a May 15, 2026 deadline. For 2024, DDEC had set November 15 for qualified physicians under Act 14-2017 or Section 2021.03. For 2025, check the date in your decree. Some decrees under earlier laws were amended to use the Code's November date. If that is your case, that date applies to you.

Extension for the report

If you requested an extension for your return at Hacienda, you can file an automatic IANE extension in the Portal with evidence of the Hacienda extension. It costs $105, and that fee is not credited toward the cost of the report (DDEC Bulletin 2026-005). If you do not request it in the Portal, you must include with your final IANE the evidence that you requested the return extension on time.

What it costs

• Resident investor: Section 6020.10(d) sets an annual fee of $5,000 for the report of those who hold a decree under Section 2021.01 or Act 22-2012. Of that, $300 goes to a special fund managed by DDEC and $4,700 to the General Fund.
• All other decrees: pay the filing and processing fee that Article 6020.01(B)(3)-1 of the Reglamento de Incentivos (Incentives Regulation) sets for each industry, at the time of filing.

Fines and consequences of not filing

There are two layers of sanctions:

The Incentives Regulation. Under Article 6020.10(a)(4)-1(c) of the Regulation, cited by DDEC in Bulletin 2026-005:

1. Once the deadline passes, the Portal notifies you of the omission.
2. If you have not filed after 15 days, an automatic $1,000 fine is imposed for each report.
3. If you do not file and pay that fine within the next 15 days, a $5,000 fine is added.
4. If you do not file and pay both fines within 30 days of the date you should have filed, DDEC may start revoking the decree.

The Incentives Code. Section 6020.10(e), as amended by Act 65-2025, allows the Secretary of DDEC to impose an administrative fine of up to $10,000 on anyone who does not file a required report or files it late. An incomplete report is treated as not filed if you do not complete the information within 15 days after you are notified.

The Compliance Certificate. If your business needs a Compliance Certificate, not having a current one amounts to immediate suspension of the decree until it is issued (Section 6011.04(c)). Without your reports up to date, it is hard to get one.

Which years the fines apply to. DDEC clarified that you are required to file starting with the first year you began operations or claimed the benefit on your return, whether or not you notified the start of operations. For programs that did not have a form before 2024, the fines apply to tax years starting January 1, 2024.

How to file it

1. Log in to the Incentives Portal at incentives.ddec.pr.gov with your user account.
2. Choose the form that matches your decree and identify the decree number.
3. Complete the information for the year and attach the evidence it asks for, such as the donation, the residence deed or evidence of the extension.
4. Pay the fee in the Portal.
5. Save the confirmation and a copy of the report.

If you make a mistake, the Portal has allowed amendments to an IANE already filed since May 2025.

What changes starting with tax year 2026

Under Act 65-2025 and AD 26-01, the requirement to file the report electronically with Hacienda as part of the return, with payment of fees, applies to tax years beginning after December 31, 2025. In practice, that points to the reports for 2026, which would be filed in 2027. Hacienda and DDEC had not published all the details as of the date of this guide. Follow their announcements at hacienda.pr.gov and in the Incentives Portal.

787TAX is an independent guide. It is not Puerto Rico's Departamento de Hacienda, the CRIM or the IRS. This page is general information, not tax or legal advice. Example figures are hypothetical. Found an error? Tell us.