El Salvador's President Signs Bill to Abolish Taxes on Tech
May 4, 2023
Today, President Nayib Bukele of El Salvador signed into law abolishing taxes on technological innovations. The Innovation and Technology Manufacturing Incentive Act is set to eliminate income, property, capital gains, and import tariffs for technology innovations. With this bold move, El Salvador further cements its reputation as a prime destination for the development and advancement of technology.
The newly passed legislation will impact a wide range of technology innovations, including software programming, coding, app development, and AI advancement. In addition to that, the tax exemption will also cover the manufacturing of computing and communication hardware.
The lack of clear regulatory measures has hindered progress in several areas of the tech industry, particularly generative AI and cryptocurrencies, which have faced uncertain regulations that have impeded their growth. As a result, El Salvador has taken swift action to establish an alternative environment through this newly passed law.
The leader of El Salvador is determined to position the Central American nation as a hub for cryptocurrency by making bold moves such as adopting bitcoin as legal tender in 2021 and revealing plans to build the world's first "bitcoin city."
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