Puerto Rico Defines Act 60 Tax Exemption for Blockchain Companies – Regulation Bitcoin News

The Economic and Commerce Development Department of Puerto Rico (DDEC) has issued a document defining the rules that blockchain projects must follow in order to receive tax benefits that the state offers companies. The act seeks to create an “atmosphere of security and stability” for blockchain companies, according to DDEC Secretary Luis Cidre.

Puerto Rico establishes rules to attract blockchain business

Puerto Rico is taking steps to attract blockchain companies interested in establishing operations in the US island territory. On February 23rd, the Puerto Rico Department of Economic and Commerce Development (DDEC) released information on a letter announcing a regulatory framework to guide the attraction of more blockchain companies to the region.

The letter clarifies the conditions these companies must meet to benefit from tax exemptions via Puerto Rico’s exemption code, also known as Act 60. Manuel Cidre, secretary of DDEC, explained that with this move, Puerto Rico expects 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, where 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 establishes other important definitions for national companies seeking to export their blockchain-related services, as it establishes which activities in the industry are eligible to receive the technology exporter exemptions.

Carlos Fontan, Director of the DDEC Business Incentives Office, also stated that with this development, Puerto Rico is at the forefront of the industry at the worldwide level, providing a precise and accurate legal framework in the sector.

The national community praised this effort, recognizing the work that the government is putting into putting Puerto Rico on the map for companies seeking a safe haven. Keiko Yoshino, CEO of the Puerto Rico Blockchain Commerce Association, stated that this shows the interest of the territory to compete in the global blockchain economy that is currently emerging.

Puerto Rico has also been active, including cryptocurrency elements as part of its regulations. In February 2022, a proposed reform of the “turnover and use tax” aimed to include NFTs (non-fungible tokens) as taxable assets, and declared that sales of these assets must be reported, including the addresses and origin of funds involved in the transaction .

What do you think about Puerto Rico and its actions to attract blockchain companies? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

Image credit: Shutterstock, Pixabay, Wiki Commons