The President of El Salvador, Neb Bukele, enacted a law eliminating all taxes on technological innovations, software and application programming, artificial intelligence, computer and communications hardware manufacturing. The law is expected to boost the country’s technology sector, create more jobs for its residents, and attract foreign investment.
Bukele signs a law to boost El Salvador’s tech industry
El Salvador’s President, Nayib Bukele, announced Thursday, on Twitter:
I just signed the Technology Innovation and Manufacturing Incentives Act that eliminates all taxes (income, property, capital gains, and import duties) on technological innovations, software and application programming, artificial intelligence, and computer and communications manufacturing.
Commenting on the new tax law, El Salvador’s Minister of Economy Maria Luisa Heim described: “El Salvador is ready to attract new investments in the technology sector, thus creating more jobs for our residents.”
The Director of the Central American Bank for Economic Integration (CABEI) in El Salvador, Luis Rodriguez, was quoted by Diario El Salvador as saying: “We welcome this commitment to the future of El Salvador, and we, as CABEI, are ready to accompany this entire process.” CABEI is a regional entity created with the aim of promoting economic integration and development. Economic and social balanced in Central America.
Eric Chacon, president of the Salvadoran Financial Technology Association, expressed his excitement about the bill for publication when it was still being debated in the Legislative Assembly weeks ago. He said that new tax incentives will allow the ecosystem to expand and that these are important steps to position El Salvador as a hub for technology and innovation.
Many on social media welcomed El Salvador’s new tax law. Venture capitalist Balaji Srinivasan commented on Twitter, “It’s not about the first world and the third world anymore. It’s about an ascending world and a descending world. Under the leadership of @nayibbukele, El Salvador has entered the ascending world.”
Dr. Rafael Fonseca, director of innovation and transformational relationships at Mayo Clinic’s campus in Arizona, tweeted:
If you don’t care what goes on in El Salvador, you should. The business going there will be loud.
In September 2011, El Salvador became the first country to legally tender bitcoin alongside the US dollar. Since then, the country has accumulated thousands of BTC And you buy bitcoins regularly for safekeeping.
What do you think of El Salvador’s Technological Innovation and Industrialization Incentives Act? Let us know in the comments section below.
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