The Puerto Rico Department of Economic and Commercial Development (DDEC) has released a document that defines the rules that blockchain projects must follow in order to receive tax incentives that the state offers to companies. According to DDEC secretary Luis Cidre, the action aims to create “an atmosphere of certainty and stability” for blockchain companies.
Puerto Rico Sets Rules to Attract Blockchain Businesses
Puerto Rico is taking steps to attract blockchain companies interested in opening operations on the US island. February 23 Puerto Rico Department of Economic and Commercial Development (DDEC) published information about the letter announcing the regulatory framework to lead the way in attracting more blockchain companies to the region.
The letter explains the conditions that these companies must meet in order to take advantage of tax benefits under Puerto Rico’s Tax Exemption Code, also known as Law 60. Manuel Cidre, secretary of the DDEC, explained that with this move, Puerto Rico is position itself as part of the most popular direction for blockchain companies. Cider stated:
Through these efforts, we aim to be proactive in tackling the new technologies that power much of the economic activity around the world, and the island is not and should not be an exception.
Additional definitions
The document also establishes other important definitions for national companies attempting to export their blockchain-related services, as it sets out which activities within the industry are eligible for technology exporter exemptions.
Carlos Fontan, director of the DDEC Business Promotion Office, also stated that this development puts Puerto Rico at the forefront of the industry globally, providing an accurate and accurate legal framework for the sector.
The national community has praised these efforts, noting the work the government is doing to make Puerto Rico known to companies seeking a safe haven. Keiko Yoshino, executive director of the Puerto Rico Blockchain Commerce Association, said this is indicative of the territory’s interest in competing in the global blockchain economy that is currently emerging.
Puerto Rico has also actively incorporated elements of cryptocurrency into its regulations. In February 2022, a “Sales and Use Tax” reform was proposed to include NFTs (non-fungible tokens) as taxable assets, stating that sales of these assets must be reported, including the addresses and origin of the funds involved in the transaction.
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