El Salvador Boosts Tech Industry by Removing Taxes on Innovations
- These include the elimination of taxes on income, property, capital gains, and import tariff
- President Nayib Bukele shared the information on his Twitter.
El Salvador has signed a law that eliminates taxes on technological innovations. The initial announcement of the bill was made in March 2023. Nevertheless, El Salvador President Nayib Bukele has shared on Twitter that he signed it into law.
According to Bukele, the Innovation and Technology Manufacturing Incentive Act will remove income, property, capital gains, and significant tariffs on technology innovations. This announcement highlights El Salvador’s stance as a favorable location for technology development.
In addition, Bukele also mentioned that taxes would be eliminated from software, app programming, AI, computer, and communications hardware manufacturing.
The bill, which was introduced in March 2023, was forwarded to Congress with the motive of safeguarding technological developments in the nation. Now that the bill has been signed into law, El Salvador is likely to attract tech firms.
In June 2021, El Salvador became the first country in the world to recognize Bitcoin as a legal tender, following the passage of a law introduced by President Nayib Bukele. The law aims to promote financial inclusion and facilitate economic growth in the country.
The move has generated significant interest and controversy, with some experts praising the potential benefits of adopting a decentralized digital currency, while others have raised concerns about the risks and uncertainties associated with Bitcoin.
Despite the criticism, the government of El Salvador has remained committed to its plan and has taken steps to promote the use of Bitcoin. El Salvador has also stood as an example for countries that are looking to follow in its footsteps in terms of crypto adoption.