El Salvador’s President Plans to Propose a Bill to Scrap Tech Taxes

SNEAK PEEK

• El Salvador’s President Nayib Bukele plans to eliminate taxes on tech innovation.
• Proposed tax exemptions aim to attract tech companies and startups.
• Recent decisions on Bitcoin reflect El Salvador’s interest in financial technology.

Earlier today, El Salvador’s President Nayib Bukele announced plans to propose a bill to eliminate technology innovation taxes. The bill would exempt income, property, capital gains, and import tariffs for software programming, coding, apps, AI development, and computing and communications hardware manufacturing.

Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing.

— Nayib Bukele (@nayibbukele) March 24, 2023

According to reports, the bill is expected to be presented to congress next week. If passed, it would make El Salvador one of the few countries in the world to offer such tax exemptions for technology innovation.

In response to Nayib’s tweet, an entrepreneur commented that El Salvador’s adoption of Bitcoin as a legal tender could make it a leader in technology innovation in Latin America, especially as the country is already dollarized. The entrepreneur also mentioned that if the bill is approved, they would expand their business, @Geeky_Drop, to El Salvador and abandon plans to go to Costa Rica.

Similarly, many Twitter users have expressed their intentions to relocate to El Salvador following the recent decision to make Bitcoin a legal tender. Many even showed appreciation by thanking Bukele, the president of El Salvador, for his decision.

On the same accord, El Salvador’s interest in technology has been evident in recent years, particularly in financial technology. President Bukele has been a vocal supporter of Bitcoin, and the country has made strides in embracing cryptocurrency. 

Just last week, the country launched a developer training program for Bitcoin and Lightning. And, later this year, the country is expected to roll out Bitcoin bonds, which have been highly anticipated. 

With the proposed tax exemptions on technology innovation, El Salvador is positioning itself as a destination for tech companies and startups, further cementing its commitment to the industry.

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• Source: https://investorbites.com/el-salvadors-president-plans-to-propose-a-bill-to-scrap-tech-taxes/