- President Nayib Bukele has signed the bill enabling zero taxes for tech companies.
- The bill is now sent to Congress for deliberation, although many are confident it will become law.
- The primary motivation for the bill is to encourage growth of tech companies in the country.
El Salvador President Nayib Bukele nabbed the crypto space headlines once more, as he has filed a bill that will remove all taxes for technology-related activities in the country.
According to the bill, which is written in Spanish, the primary motivation for waiving all tech-related taxes is to spur the growth of tech companies by providing a more sustainable setup for their operations.
The bill has yet to be translated into English, but according to President Bukele’s tweet last week, the zero tax incentive will apply to income, property, capital gains, and import tariffs. These include operations related to software programming, coding, artificial intelligence (AI) and app coding, as well as tech-related 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.
Read CRYPTONEWSLAND ongoogle news — Nayib Bukele (@nayibbukele) March 24, 2023
The tweet did not mention anything related to blockchain, but given the country’s friendly relations with the crypto industry, others feel it is safe to assume firms involved in decentralized app (DApp) development will also be eligible for the zero tax incentive.
Bukele has signed the bill and is now submitted to the Legislative Assembly — El Salvador’s Congress — for deliberation. However, given Bukele’s sway over the legislative body of the country, many would assume that the bill will effectively become law soon.
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