H.R. 2982: Fair Taxation of Digital Assets in Puerto Rico Act of 2025

This bill, titled the Fair Taxation of Digital Assets in Puerto Rico Act of 2025, seeks to amend the Internal Revenue Code to change how digital asset income is taxed for residents of Puerto Rico.

Key Provisions:

• Definition of Digital Assets: The bill defines a "digital asset" as any digital representation of value recorded on a cryptographically-secured distributed ledger.
• Income Exemption: It proposes that certain types of income related to digital assets will not be classified as derived from sources within Puerto Rico. Specifically, this includes:
  • Income from activities such as mining or staking digital assets.
  • Income from holding digital assets, including any forks or air drops.
  • Income from selling, exchanging, or otherwise disposing of digital assets.
• Financial Interests: The bill states that any financial interest in a digital asset will be treated as a digital asset itself, which aligns with the regulation of related income from such interests.
• Effective Date: The changes to the tax code will apply to taxable years starting after the bill is enacted.

The objective of this bill is to clarify the taxation of digital assets for Puerto Rican residents, possibly influencing the digital economy and investment landscape within the territory.

Relevant Companies:

• None found