El Salvador, the country known for being the first to make Bitcoin legal tender, has taken a new step towards promoting technological development. President Nayib Bukele recently sent a bill to Congress, which exempts technology innovations from taxes to encourage the growth of the tech industry in the country. The exemption applies to developers in coding apps, AI development, software programming, communications hardware manufacturing, and computing. This new law aims to make El Salvador a leader in advanced technology manufacturing in Latin America, and attract more developers into the country.
The bill eliminates all import tariffs, income capital gains, and property taxes from these sectors, effectively turning El Salvador into a tax haven for developers. President Bukele has outlined his reasons for the tax exemption, including accelerating manufacturing and innovation, particularly in semiconductors and microelectronic components.
Moreover, the president has established a National Bitcoin Office (ONBTC) to support this recent move, which will work alongside bitcoin companies and entrepreneurs in the country. The regulatory body aims to position El Salvador as a technology and economic power worldwide, while also diversifying and expanding Salvadorean human talent towards technology manufacturing. This decision has received positive responses from many users who see it as a significant step towards pushing the country’s tech industry.
