Role of DDEC: Understanding Act 60 Administration

Understanding DDEC's Role Under Act 60

The Department of Economic Development and Commerce (DDEC) is the primary government agency administering Act 60. Understanding DDEC's structure and processes may help decree holders and applicants navigate the system more effectively.

DDEC Responsibilities

• Processing decree applications for all Act 60 chapters
• Conducting compliance reviews and audits
• Issuing administrative orders and circular letters (cartas circulares)
• Coordinating with Hacienda on tax-related matters
• Publishing guidance on incentive program requirements
• Managing the annual compliance reporting process

The Office of Incentives (Oficina de Incentivos)

Within DDEC, the Office of Incentives directly manages decree-related matters. Under Administrative Order DDEC 2025-002, the Director of the Office of Incentives has been delegated authority to expedite certain decree processes.

DDEC Circular Letters

DDEC issues circular letters (cartas circulares) that clarify procedures and requirements. For example, Carta Circular DDEC (OIN) 2025-006 clarified various procedures under Ley 60-2019 for petitioners and concessionaires. Monitoring these publications is generally advisable for staying current with requirements.

The Decree Application Process

Applications are submitted to DDEC and undergo multiple review phases:

1. Initial review: Document completeness and basic eligibility
2. Technical review: Financial viability, regulatory compliance, operational feasibility
3. Final review: Senior approval and decree preparation

Processing times vary based on application complexity and DDEC workload. Professional representation is commonly engaged for the application process.

Ongoing Relationship

After decree issuance, the relationship with DDEC continues through:

• Annual compliance reports (due November 15 per Section 6020.10(a)(3))
• Annual filing fee ($5,000 per Section 6020.10(d))
• Periodic compliance reviews
• Biennial compliance certification (Section 6011.04)
• Notification of material changes in business operations

Communication Practices

Common approaches for effective DDEC interaction include:

• Written communication for all substantive matters
• Timely responses to information requests
• Including case numbers in all correspondence
• Professional representation for complex matters
• Maintaining copies of all communications

Administrative Penalties

Section 6020.10(e) authorizes administrative fines of up to $10,000 for failure to file required reports or late filing. Proactive communication about potential compliance issues is generally considered preferable to non-compliance.

Recent Developments

• DA 26-01: Postponement of annual report integration with tax return filing (Ley 65-2025 implementation)
• OA DDEC 2025-002: Delegation of authority for expedited processing
• CC DDEC 2025-006: Procedural clarifications for petitioners and concessionaires
• CC DDEC 2025-014: SME incentives guidance

Frequently Asked Questions

Can I communicate directly with DDEC? Yes, though professional representation is commonly engaged for complex matters. Written communication is generally recommended.

How long does the application process take? Generally 4-8 months depending on complexity, completeness, and current DDEC processing volume.

What if I have a dispute with DDEC? Administrative appeals processes exist. Professional legal representation is generally recommended for disputes.

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Virtus Advisory provides this content solely for informational purposes. Nothing in this article should be construed as a guarantee of any particular tax outcome, an endorsement of any specific tax strategy, or an offer to provide professional services. For personalized guidance, contact a licensed CPA or tax professional.