What are the advantages of Puerto Rico's low federal tax rate for cryptocurrency businesses?

3 answers

• Nov 23, 2021 · 3 years ago
  One of the main advantages of Puerto Rico's low federal tax rate for cryptocurrency businesses is the potential for significant tax savings. By establishing a presence in Puerto Rico, businesses can take advantage of Act 60, also known as the Export Services Act, which allows certain businesses to pay only 4% in corporate taxes. This is a substantial reduction compared to the 21% federal corporate tax rate in the United States. The lower tax rate can result in significant cost savings and increased profitability for cryptocurrency businesses.
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• Nov 23, 2021 · 3 years ago
  In addition to the lower tax rate, Puerto Rico offers other tax incentives for cryptocurrency businesses. For example, Act 22, also known as the Individual Investors Act, allows individuals who become residents of Puerto Rico to pay zero capital gains tax on their investment income. This can be particularly beneficial for cryptocurrency investors who have realized substantial gains. By moving to Puerto Rico, they can legally avoid paying capital gains tax on their cryptocurrency profits.
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• Nov 23, 2021 · 3 years ago
  Another advantage of Puerto Rico's low federal tax rate for cryptocurrency businesses is the opportunity for tax-free repatriation of profits. Under Act 60, businesses that qualify as export services can repatriate their profits to the United States without incurring additional federal taxes. This means that cryptocurrency businesses operating in Puerto Rico can bring their earnings back to the mainland without facing the usual tax burdens. This can provide businesses with more flexibility in managing their finances and reinvesting their profits.
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