Act 60 Tax Exemptions for Blockchain Businesses Defined in Puerto Rico

The Economic and Commercial Development Department of Puerto Rico (DDEC) has published a document outlining the requirements blockchain projects must meet in order to be eligible for the state’s tax breaks for businesses. According to DDEC Secretary Luis Cidre, the action aims to “establish a climate of confidence and stability” for blockchain enterprises.

Puerto Rico Sets Up Regulations To Draw In Blockchain Business

The U.S. island commonwealth of Puerto Rico is taking steps to entice blockchain businesses interested in setting up shop there. The Economic and Commerce Development Department of Puerto Rico (DDEC) released details on a letter establishing a legal framework to help the area draw more blockchain businesses on February 23.

The letter specifies the requirements that these businesses must satisfy in order to be eligible for tax exemptions under Act 60, the Puerto Rico Exemptions Code. By taking this action, Puerto Rico hopes to establish itself as one of the most sought-after locations for blockchain businesses, according to Manuel Cidre, secretary of the DDEC. Cidre said:

With this initiative, we aim to be proactive in addressing a growing technology, on which a lot of economic activity is being developed all over the world, and the island is neither the exception nor should it be.

Additional Defined

As it identifies which activities within the sector are qualified for getting the exemptions for tech exporters, the paper also provides additional crucial definitions for national businesses attempting to export their blockchain-related services. With this accomplishment, according to Carlos Fontan, director of the DDEC Business Incentives Division, Puerto Rico is at the forefront of the business on a global scale, offering a precise and accurate regulatory framework in the field.

The administration is working hard to make Puerto Rico known to businesses looking for a safe haven, and the national community applauded this effort. According to Keiko Yoshino, executive director of the Puerto Rico Blockchain Commerce Association, this demonstrates the territory’s desire in participating in the rapidly developing global blockchain economy.

Puerto Rico has also been active, incorporating parts of bitcoin into its rules. In order to incorporate NFTs (non-fungible tokens) as taxable assets, a proposed change to the “Sales and Use Tax” was made on February 20, 2022. It stated that sales of these assets would need to be declared, together with the addresses and the source of the funds used in the transaction.

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