Neb Bukele, the president of El Salvador and a Bitcoin proponent, recently signed a law eliminating taxes on technological innovations in the country. The Manufacturing and Technology Innovation Incentives (ITMI) Act revealed a wide range of sectors in which complete tax removal would apply.
While countries like the US administration want high tax payments on technological innovations such as cryptocurrency mining, this new law can go far in attracting innovation-focused companies, which will bring development to the nation.
I just signed into law the Innovation and Technology Incentives Act, which eliminates all taxes (income, property, capital gains, and import duties) on technological innovation, software and application programming, artificial intelligence, computer manufacturing, and communications. pic.twitter.com/rZtGzPgVzW
– Nayib Bukele (@nayibbukele) May 4, 2023
El Salvador is pushing technological innovation by eliminating taxes
Nayib Bukele took to his official Twitter account on May 4, 2023 to He says He signed the new law To ensure that property taxes, income, capital gains, import tariffs, software and application programming, artificial intelligence, computer and communications hardware manufacturing are completely removed in the future.
A law signed by ITMI was in the works, as was the case in March 2023, when the President of El Salvador made clear his intentions to introduce a bill to protect innovative technological developments in the country.
In accordance with his intentions, legislation was referred to Congress to abolish taxes on technological innovations in the country.
This newly signed law is just one among many efforts the Salvadoran president has pushed for the country’s technological growth and development.
In January 2023, Forbes India released a report The news reported that El Salvador has established a legal framework and process for issuing Bitcoin-backed bonds, also known as “volcano bonds.”
Bitcoin-backed bonds in El Salvador have been pushed forward to make sovereign debt payments, and develop Bitcoin mining infrastructure by funding the creation of a project called Bitcoin City to scale sustainable cryptocurrency mining efforts.
A nation that welcomes innovative technology and crypto mining companies?
The law that Neb Bukil signed earlier today can reinforce this lawIt is the growth and technological development of El Salvador as a nation and of the manufacturing, technology and cryptocurrency companies operating in the country. With no-tax law applicable to the previously mentioned sectors, innovative offshore companies are provided with an incentive to shift operations to a country with positive tax law.
Nayib Bukele’s efforts to build Bitcoin city Near the Conchagua volcano in the country, companies are going to significantly expand the scope of their BTC mining activities. MailThe energy needed for mining will be obtained directly from the volcano, which generates hydrothermal energy.
While the United States recently proposed a 30 percent tax on cryptocurrency mining operations, El Salvador continues to foster a thriving technological innovation ecosystem.
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