The latest move by El Salvador to remove taxes on tech innovation-related activities is expected to help the crypto space.
El Salvador is once again in the news for developments related to the crypto industry, and all for a good reason. This time, the country has removed taxes on all tech innovation-related activities such as coding, app development, software programming, technology hardware manufacturing and others.
The President of El Salvador, Nayib Bukele, had earlier tweeted, saying,” 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.” He kept the promise and sent the bill to Congress for implementing the decisions on April 1.
El Salvador is recognized as the first country to legalize crypto and has taken several positive steps for the industry in the last few years. Recently, it also established the National Bitcoin Office (ONBTC) of El Salvador, a regulatory body aiming to collaborate with Bitcoin firms and entrepreneurs to help improve the economic growth of the country.
The latest bill for removing taxes on tech innovation also has several goals, including expanding the manufacturing of technical components such as semiconductors, developing processing and unique materials technologies, being a leader in Latin America for technology manufacturing, and sourcing talented human resources from EL Salvador for the same.
The proposed law also aims to be a bridge between employers and employees and help improve education and training in technology in the country. The crypto space will likely benefit from the non-taxation of tech innovation.