Nayib Bukele, the president of El Salvador announced on Thursday via Twitter:
The Innovation and Technology Manufacturing Incentives Act, which I signed into law just now, eliminates all taxes on software and app development, AI, computer and communication hardware manufacturing, and income, property and capital gains.
Maria Luisa Hayem, Minister of Economy for El Salvador, said: “El Salvador is prepared to attract new investment in the technology sector and generate more jobs.
Diario El Salvador quoted El Salvador’s Director of the Central American Bank for Economic Integration, Luis Rodriguez as saying: “We welcome this commitment for the future of El Salvador. We are prepared as CABEI, to accompany this whole process.” CABEI was established as a regional organization with the goal of promoting balanced economic and social growth in Central America.
Erick Chacon expressed to the publication his excitement over the bill when it was being discussed by the Legislative Assembly a few weeks ago. He stated that the new tax incentives will allow the ecosystem expand, and that this is an important step to position El Salvador in a technology hub.
Social media is awash with praise for El Salvador’s newly passed tax law. Balaji Srinivasan, a venture capitalist, commented on Twitter that it’s no longer about the first and third world. It’s all about ascending and descending world. El Salvador is now part of the ascending world under the leadership of @nayibbukele.
Dr. Rafael Fonseca tweeted that he is the director of Innovation and Transformational Relationships on Mayo Clinic’s Arizona campus.
You should pay attention to the events in El Salvador. There will be a lot of noise.
El Salvador was the first country in the world to adopt bitcoin as legal tender along with the U.S. Dollar. Since then, El Salvador has amassed thousands BTC. It also purchases bitcoins for its Treasury.