The Puerto Rico Department of Economic and Commercial Development (DDEC) has issued a document defining the rules blockchain projects must follow to receive the tax incentives the state offers companies. According to DDEC Secretary Luis Cidre, the measure aims to create a “secure and stable atmosphere” for blockchain companies.
Puerto Rico Develops Rules to Attract Blockchain Businesses
Puerto Rico is moving to attract blockchain companies interested in establishing operations in the U.S. islands On February 23, the Puerto Rico Department of Economic and Commercial Development (DDEC)released informationregarding a letter announcing a regulatory framework to lead the way in attracting more blockchain companies.
The letter clarifies the conditions that these companies must meet in order to benefit from tax exemptions through Puerto Rico’s Tax Exemption Code (also known as Act 60) DDEC Secretary Manuel Cidre said that with this move, Puerto Rico will become one of the blockchain Cidre explained that he hopes this move will position Puerto Rico as some of the most sought-after destinations for blockchain companies.
Through this initiative, we are looking to actively engage in emerging technologies that are generating a lot of economic activity around the world, and this island is not and should not be an exception.
Other Definitions
This document also establishes other definitions that are important for domestic companies seeking to export blockchain-related services and which activities within the industry qualify for the technology exporter exemption.
Carlos Fontan, director of the DDEC Business Incentives Office, also stated that this development puts Puerto Rico at the forefront of the industry on a global level and provides a precise and precise legal framework in this sector.
Communities across the country applauded the effort and recognized the work the government is doing to put Puerto Rico on the map for businesses seeking a safe haven. Keiko Yoshino, executive director of the Puerto Rico Blockchain Commerce Association, said this shows the state’s interest in competing in the global blockchain economy that is now emerging.
Puerto Rico has also been active in including a cryptocurrency component as part of its regulations: in February 2022, a proposed “sales and use tax” reform aims to include NFTs (non-fossil tokens) as taxable assets, and sales of these assets, the address and source of funds involved in the transaction and declares that they must be reported, including.
Image credits: Shutterstock, Pixabay, Wiki Commons
