The Economic and Commerce Development Department of Puerto Rico (DDEC) has issued a document in which it defines the rules that blockchain projects must follow to receive tax benefits that the state offers companies. The action seeks to create an “atmosphere of certainty and stability” for blockchain companies, according to DDEC Secretary Luis Cidre.
Puerto Rico Establishes Rules to Attract Blockchain Business
Puerto Rico is making moves to attract blockchain companies interested in establishing operations in the U.S. island territory. On Feb 23, the Economic and Commerce Development Department of Puerto Rico (DDEC) issued information regarding a letter announcing a regulatory framework to spearhead the attraction of more blockchain companies to the region.
The letter clarifies the conditions these companies must meet to benefit from tax exemptions via the Puerto Rican exemptions code, also known as Act 60. Manuel Cidre, secretary of the DDEC, explained that with this move Puerto Rico expects to position itself as part of the most sought out 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.
The document also establishes other significant definitions for national companies trying to export their blockchain-related services, as it establishes which activities inside the industry are eligible for receiving the exemptions for tech exporters.
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 a worldwide level, providing a precise and accurate legal framework in the sector.
The national community commended this effort, recognizing the work that the government is putting in to put Puerto Rico on the map for companies searching for a safe haven. Keiko Yoshino, executive director of the Puerto Rico Blockchain Commerce Association, stated that this shows the interest of the territory in competing in the global blockchain economy that is currently emerging.
Puerto Rico has also been active including cryptocurrency elements as part of its regulations. On Feb. 2022, a proposed reform of the “Sales and Usage Tax” aimed to include NFTs (non-fungible tokens) as taxable assets, declaring that sales of these assets would have to be reported, including the addresses and the origin of the funds involved in the transaction.
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