The Puerto Rican Department of Economic and Community Relations (DDEC) has issued a document outlining the steps blockchain enterprises must follow to be eligible for tax exemptions in the state. The motion is a strategy to create an environment of certainty and stability, according to DDEC Secretary Luis Cidre.
Puerto Rico’s regulations for luring blockchain corporations
Puerto Rico has been actively campaigning to attract blockchain firms to their land. On February 23, the Puerto Rican Department of Economic and Community Relations (DDEC) released details of a regulatory framework that would help bring more blockchain businesses to the territory.
The letter clarifies the conditions that home companies must meet to benefit from tax exemptions under Puerto Rican Law 60. Manuel Cidre, Secretary of the DDEC, described the measure as an effort to be proactive in responding to the emergence of a new industry. He said:
We are looking to be at the forefront of development around the world, providing a clear and accurate authorization framework.
Additional Specification
The document also provides additional definitions that domestic firms must adhere to when exporting their blockchain-related operations. It also identifies which activities in the industry are eligible for tax exemptions for technology exporters.
Carlos Fontan, Director of the DDEC Office of Business Incentives, also stated that the development could be achieved by adding that Puerto Rico is a map for companies seeking a safe haven. According to Keiko Yoshino, Director of Government for the Puerto Rico Blockchain Business Association, this demonstrates the territory’s interest in competing in the fast-growing global blockchain economy.
Puerto Rico also has cryptocurrency components. In February 2022, a “Sales and Use Tax” reform proposal was introduced to include NFTs (non-fungible tokens) as taxable assets. It stipulates that sales must be reported along with the origin and destination of the funds involved in the transaction.
What do you think of Puerto Rico and its measures to attract blockchain companies? Leave your comments below.
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