Puerto Rico Defines Act 60 Tax Exemptions for Blockchain Companies – Puerto Rico is making efforts to attract blockchain companies interested in establishing operations on the US territory’s island. On February 23, the Economic and Commerce Development Department of Puerto Rico (DDEC) announced a statement establishing a legal framework to encourage more blockchain enterprises to the region.
The letter specifies the restrictions that these companies must follow in order to benefit from tax breaks under the Puerto Rican exemptions act, generally known as Act 60. According to Manuel Cidre, secretary of the DDEC, Puerto Rico aims to establish itself as one of the most sought-after destinations for blockchain enterprises with this action.
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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 specifies other crucial definitions for national enterprises attempting to export blockchain-related services, as well as which activities within the industry are eligible for tech exporter exemptions.
According to Carlos Fontan, director of the DDEC Business Incentives Office, Puerto Rico is now in the forefront of the industry on a global scale, providing a precise and accurate regulatory framework in the field. The national community applauded this effort, recognizing the government’s efforts to place Puerto Rico on the map for enterprises looking for a safe haven.
According to Keiko Yoshino, executive director of the Puerto Rico Blockchain Commerce Association, this demonstrates the territory’s ambition in competing in the global blockchain economy that is now expanding. Puerto Rico has also been active adding cryptocurrency elements as part of its policies. On February 20, 2022, a proposed revision of the “Sales and Usage Tax” declared that sales of these assets would have to be disclosed, including the locations and origin of the funds involved in the transaction.