As he announced a few days ago, Nayib Bukele, President of El Salvador, presented his bill to exempt companies in the technology sector from taxes. What are the key points of this text?
Nayib Bukele wants to abolish taxes to encourage innovation in El Salvador
While on March 24, the President of El Salvador, Nayib Bukele, announced that he would present a bill relating to tax cuts in the technological sector to promote innovation, said project was submitted this week to the Asamblea Legislativa :
Done ✅ https://t.co/5CD6l3xJlC pic.twitter.com/vzKJ5rI3qv
—Nayib Bukele (@nayibbukele) March 31, 2023
This law project also concerns blockchain companiestaking into account that among all the eligible sectors detailed in article 6, natural or legal persons working in distributed ledger technologies are mentioned.
More broadly, this also concerns areas such as artificial intelligence, programming, data analysis, or various technological industries such as robotics and semiconductors, to cite just a few examples from this long list.
It was María Luisa Hayem, El Salvador’s Minister of Economy, who presented this law to the country’s parliamentarians:
“At the request of President Nayib Bukele, we are bringing an initiative that will foster innovation in the country’s technology sector. With the initiative of the Act for the Promotion of Technological Innovation and Manufacturing, we seek to generate more sources of skilled jobs in the country, because technology is the future. »
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What are the key points of this bill?
Among the tax exemptions proposed by this bill, we can cite income taxes, local taxes, those on capital gains as well as import taxes.
These exemptions will be valid for a period of 15 years from the day on which the Ministry of the Economy has validated the eligibility of the company in question. Only the fields of activity mentioned in article 6 are eligible for these provisions, consequently, if a company has several sectors of activity, these facilities will only apply to the fields concerned.
The clearly stated objective is to make El Salvador a stronghold in the technological fieldin order to gain worldwide recognition and promote job creation.
Whether through this initiative, or through his assumed interest in Bitcoin (BTC), President Bukele is making resolutely forward-looking choices. If these bets are successful, this could give El Salvador a place of choice on the international economic scene in the years to come.
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Sources: Asamblea Legislativa, bill
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