Connect with us

NFT

Puerto Rican Treasury Department Wants to Tax NFTs

NFT

The Treasury Department of Puerto Rico published a document that modifies the “Sales and Usage tax” to include NFTs. Although this proposal is still being considered, experts believe that it validates the asset class and also addresses the challenges of applying this regulation.

Puerto Rico May Soon Tax NFT Sales

The Department of Treasury of Puerto Rico is focused on NFT sales. The organization released a newly proposed reform to the Sales and Usage Tax law last month that includes the concept of NFTs as a taxable asset class. The new amendment would also include NFTs in the Specific Digital Products group. It is

Digital audiovisual work transferred or delivered electronically, and digital audio works or other digital products provided that a purchaser has a digital code will be treated the same as any specific digital product, even digital products in token format, medium non-fungible, or “NFT”.

The amendment outlines the steps taxpayers must take to report NFT sales. It states that the details must include the source and addresses of buyers, if possible. This is the response of the country’s treasury to the rise of NFTs, which have seen billions in sales worldwide.

A Challenge to Apply

While analysts agree that NFTs should be recognized and included in the reform, many believe that the application of these rules to the Treasury department will prove difficult. This is the opinion of CPA Giancarlo Esquilin, who told local media that the current definition of the law project is not adequate. He said

It is difficult to apply the tax as there are many factors that determine where the buyer is. You don’t know who your buyer or where their bank account is for NFTs. It would be difficult to control.

Esquilin recognizes that Puerto Rico may be the first U.S. territory to consider NFTs taxable products. This could lead to other jurisdictions adopting similar regulations. Juan Pedreira, a tech analyst, stated that it is unclear how the Treasury will audit these sales. Pedreira stated that this process would not be as straightforward as the Treasury currently makes it appear.

What do you think about Puerto Rico potentially taxing NFT sales? Please leave your comments below.

sergio@bitcoin.com'

Sergio Goschenko

Sergio is a Venezuelan cryptocurrency journalist. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. He is a computer engineer by trade, and he lives in Venezuela. This has influenced him to offer a different perspective on crypto success and how it can help the underbanked and unbanked.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

Read More

NFT

Florida Teens Charged in $4M Las Vegas Crypto Kidnapping

Florida teenagers are facing charges of kidnapping and stealing $4 million in cryptocurrency and non-fungible tokens. Teenagers to Be Tried As Adults Three Florida teenagers are reportedly facing charges of kidnapping and stealing $4 million in cryptocurrency and non-fungible tokens (NFTs) from a Las Vegas-based man…
Read More

Continue Reading

NFT

Nike is facing a lawsuit from people who bought its NFTs

Wes Davis

Wes Davis is a weekend editor who covers the latest in tech and entertainment. He has written news, reviews, and more as a tech journalist since 2020.

A group of people sued Nike this week over its decision to wind down its virtual show project RTFKT last year. The buyers of the digital assets accuse Nike of causing “the rug to be pulled out from under them,” and say they wouldn’t have bought its NFTs if they’d known they were “unregistered securities,” reports Reuters.

Filed in New York’s Eastern District, the proposed class action lawsuit seeks “unspecified damages of more than $5 million for alleged violations of New York, California, Florida and Oregon consumer protection laws.”

Nike tried to jump into the NFT game by buying RTFKT in 2021. But, like Starbucks Odyssey, it never quite worked out and the company abandoned the idea, announcing in December via the RTFKT X account that it planned to “wind down RTFKT operations” by the end of January this year.

Since then, RTFKT has seemingly been maintained by a single person named Samuel Cardillo, who spent Thursday posting through the sudden disappearance (and later reappearance) of artwork for its CloneX NFTs project.

Read More

Continue Reading

NFT

Report: SEC Concludes Opensea Probe, Drops Enforcement Threat Over NFTs

The U.S. Securities and Exchange Commission (SEC) has reportedly ended its investigation into Opensea and will not pursue enforcement action against the non-fungible token (NFT) marketplace over allegations that its NFTs constituted unregistered securities, the company confirmed to Bloomberg this week. Following Coinbase, SEC Ends OpenSea Investigation Under Trump’s Regulatory Climate Opensea…
Read More

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.