Are there any special tax incentives for cryptocurrency businesses in Puerto Rico?

1 answers

• Harish ThampySep 26, 2023 · 2 years ago
  Yes, there are special tax incentives for cryptocurrency businesses in Puerto Rico. The Puerto Rico Act 20 and Act 22 provide attractive tax benefits for businesses and individuals in the cryptocurrency industry. Under Act 20, cryptocurrency businesses can enjoy a flat 4% corporate tax rate and 100% tax exemption on dividends and capital gains. Act 22 offers individuals a 0% tax rate on capital gains and dividends. These incentives make Puerto Rico a favorable location for cryptocurrency businesses, as they can significantly reduce their tax liabilities. However, to qualify for these incentives, businesses need to meet certain requirements, such as establishing a physical presence in Puerto Rico and creating jobs for local residents. It's advisable to seek professional advice to ensure compliance with the regulations and maximize the benefits of these incentives.
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