The President of El Salvador, Nayib Bukele, has just signed the law to remove all taxes related to technological innovation, including for blockchain companies. This measure aims to strengthen the country’s position as a destination for new businesses while attracting investment in the technology sector and creating local jobs.
El Salvador opens up to technological innovation
On March 24, the President of El Salvador Nayib Bukele had publicly announced his intention to abolish all taxes relating to technological innovation. Well, the latter has just officially signed this law, which therefore comes into force.
I’ve just signed into law, the INNOVATION AND TECHNOLOGY MANUFACTURING INCENTIVES ACT, that eliminates all taxes (income, property, capital gains and import tariffs) on technology innovations, software and app programming, AI, computer and communications hardware manufacturing. pic.twitter.com/rZtGzPgVzW
—Nayib Bukele (@nayibbukele) May 4, 2023
As indicated in the Salvadoran president’s tweet, the law should cover, among others, companies operating in the sectors of programming, artificial intelligence (AI), as well as the manufacture of computer and communication equipment.
The abolition of taxes on income, property, capital gains and import duties should consolidate El Salvador’s place as a favorable host country for new businesses. On this occasion, Salvadoran Economy Minister María Luisa Hayem said: El Salvador is ready to attract new investments in the technological sector and thus generate more jobs for our population “.
Note that this law will also concern companies operating in the blockchain sector. A point that does not come as a surprise, El Salvador being the first country in the world to have adopted Bitcoin (BTC) as legal tender in its territory, in particular in order to promote financial inclusion and promote the economic growth of the country.
Recently, El Salvador made Bitfinex the first crypto company to obtain a digital asset service provider license through a local branch. The latter has thus become the first to tokenize stocks and bonds – apart from other digital investment products – on Salvadoran soil.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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