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Puerto Rico Extends 4% Tax Incentive to Crypto and Blockchain Activities
Staking and exporting crypto services qualify for the tax rate.
Puerto Rico has extended its 4% tax incentive to crypto assets and blockchain activities, including staking.
Blockchain technology, digital assets based on blockchain technology and blockchain validation (the activity undertaken to reach a consensus on valid transactions) will now come under the incentive code, Iris Santos Diaz, acting secretary at Puerto Rico’s Department of Economic Development and Commerce, said in a letter on Feb 22.
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Certain providers of digital assets and blockchain activities qualify for the “export service incentive,” which allows businesses that export a service of the Islands to benefit from a 4% corporate tax rate, a press release by the Puerto Rico Blockchain Trade Association said on Monday.
Puerto Rico has already been crowned a tax haven by crypto businesses who have sought to take advantage of the country’s policies, and so the move wasn’t necessarily unexpected. But industry lobby groups are still excited.
“A 4% tax on the income generated from staked assets is a win for Puerto Rico,” Keiko Yoshino, executive director for the Puerto Rico Blockchain Trade Association, said in the press release.
Puerto Rico is also looking at how it can generate more revenue by also taxing non-fungible tokens (NFT’s), according to a proposal last year.
Camomile Shumba
Camomile Shumba is a CoinDesk regulatory reporter based in the UK. Previously, Shumba interned at Business Insider and Bloomberg. Camomile has featured in Harpers Bazaar, Red, the BBC, Black Ballad, Journalism.co.uk, Cryptopolitan.com and South West Londoner.
Shumba studied politics, philosophy and economics as a combined degree at the University of East Anglia before doing a postgraduate degree in multimedia journalism. While she did her undergraduate degree she had an award-winning radio show on making a difference. She does not currently hold value in any digital currencies or projects.
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