Puerto Rico Sets Out Rules for Act 60 Tax Exemptions for Blockchain Firms
The Economic and Commerce Development Department of Puerto Rico (DDEC) has issued guidelines for blockchain projects seeking to receive tax benefits offered by the state under Act 60. The move aims to create a stable business environment for blockchain companies, according to DDEC Secretary.
Puerto Rico has been making strides to attract blockchain firms interested in setting up operations on the US island territory. On 23 February, the DDEC issued a letter detailing a regulatory framework to incentivize more blockchain firms to invest in the region.
The letter sets out the criteria that blockchain firms must meet to receive tax exemptions through Act 60. Secretary of the DDEC, Manuel Cidre, said that the move is intended to help Puerto Rico establish itself as one of the most sought-after destinations for blockchain firms, adding:
“Through this effort, we seek to be proactive in addressing an emerging technology, on which a lot of economic activity is being created around the world, and the island is not and should not be the exception.”
The Director of the DDEC Business Incentives Office, Carlos Fontan, said with this move, Puerto Rico is at the forefront of the industry at a global level. The national community has praised the Caribbean island's efforts to make it a safe place for businesses. The Puerto Rico Blockchain Commerce Association's Executive Director Keiko Yoshino said Puerto Rico is ready to compete in the blockchain economy.
Puerto Rico has incorporated cryptocurrency elements into its regulations. The Sales and Usage Tax reform of February 2022 included non-fungible tokens (NFTs) as taxable assets, requiring their sale to be reported, including address and origin.
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