What are the advantages of using Puerto Rico for cryptocurrency tax planning?

3 answers

• Dec 26, 2021 · 3 years ago
  One of the advantages of using Puerto Rico for cryptocurrency tax planning is the favorable tax incentives offered by the Puerto Rican government. Puerto Rico has enacted Act 60, also known as the Export Services Act, which provides significant tax benefits for individuals and businesses engaged in eligible export services, including cryptocurrency trading. Under Act 60, eligible individuals can benefit from a 4% tax rate on their Puerto Rico-sourced income, and businesses can enjoy a 4% corporate tax rate. This can result in substantial tax savings compared to other jurisdictions.
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• Dec 26, 2021 · 3 years ago
  Another advantage of Puerto Rico for cryptocurrency tax planning is the absence of federal taxes on Puerto Rico-sourced income. Since Puerto Rico is a US territory, individuals and businesses that establish residency or operations in Puerto Rico can take advantage of the unique tax status. This means that Puerto Rico-sourced income, including income from cryptocurrency trading, is not subject to federal income tax. This can be a significant advantage for cryptocurrency traders and investors looking to minimize their tax liability.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, also recognizes the advantages of using Puerto Rico for cryptocurrency tax planning. With its favorable tax incentives and unique tax status, Puerto Rico provides a strategic location for individuals and businesses in the cryptocurrency industry. By establishing residency or operations in Puerto Rico, cryptocurrency traders and investors can benefit from the tax savings and favorable regulatory environment offered by the Puerto Rican government. This can contribute to a more efficient and cost-effective tax planning strategy for cryptocurrency activities.
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