Puerto Rico has expanded its 4% tax break to include staking and other blockchain-related activity.
Iris Santos Diaz, acting secretary at Puerto Rico's Department of Economic Development and Commerce, announced in a letter on February 22 that blockchain technology, digital assets based on blockchain technology, and blockchain validation (the activity undertaken to reach a consensus on valid transactions) will now be covered by the incentive code.
According to a press release from the Puerto Rico Blockchain Trade Association on Monday, certain providers of digital assets and blockchain services are eligible for the "export service incentive," which enables companies that export a service from the Islands to take advantage of a 4% corporate tax rate.
The action wasn't entirely unexpected because crypto companies who intended to take advantage of the nation's rules had already dubbed Puerto Rico a tax haven. Industry lobbying organizations are nonetheless enthusiastic.
According to the press release, Keiko Yoshino, executive director of the Puerto Rico Blockchain Trade Association, indicated that a 4% tax on the money derived from staked assets is a gain for Puerto Rico.
According to a proposal made last year, Puerto Rico is also considering how it may increase its revenue by taxing non-fungible tokens (NFTs).