The Puerto Rico Department of Economic and Commercial Development (DDEC) has issued a document that defines the rules that blockchain projects must follow to receive the tax benefits offered by the state to companies. The action seeks to create an “environment of certainty and stability” for blockchain companies, according to DDEC secretary Luis Cidre.
Puerto Rico sets rules to attract blockchain business
Puerto Rico is making moves to attract blockchain companies interested in setting up operations on the US island territory. On February 23, the Puerto Rico Department of Economic and Commercial Development (DDEC) issued information about a letter announcing a regulatory framework to spearhead the attraction of more blockchain companies to the region.
The letter clarifies the conditions that these companies must meet to benefit from tax exemptions through the Puerto Rican exemption code, also known as Law 60. Manuel Cidre, secretary of the DDEC, explained that with this measure Puerto Rico hopes to position itself as part of the most sought after destinations for blockchain companies. Cidre stated:
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.
more definitions
The document also sets out other important definitions for domestic companies attempting to export their blockchain-related services, as it sets out which activities within the industry are eligible to receive the exemptions for technology exporters.
Carlos Fontan, director of the DDEC’s Office of Business Incentives, also stated that with this development Puerto Rico is placed at the forefront of the industry worldwide, providing a precise and accurate legal framework in the sector.
The national community praised this effort, recognizing the work the government is doing to put Puerto Rico on the map for companies seeking a safe haven. Keiko Yoshino, executive director of the Puerto Rico Blockchain Commerce Association, stated that this demonstrates the territory’s interest in competing in the currently emerging global blockchain economy.
Puerto Rico has also been active including cryptocurrency elements as part of its regulations. In February 2022, a “Sales and Use Tax” reform proposal aimed to include NFTs (non-fungible tokens) as taxable assets, stating that sales of these assets should be reported, including addresses and origin. of the funds involved in the transaction.
What do you think of Puerto Rico and its actions to attract blockchain companies? Tell us in the comment section below.
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