El Salvador President Signs Law To Eliminate Taxes On Tech Innovations• May 4, 2023 3:42 pm • Comments
El Salvador is once again taking steps to ensure that it becomes a technology and crypto hub in the future that attracts talent from all over the world.
Just recently, El Salvador President Nayib Bukele signed a new law today that would essentially eliminate all taxes for technological innovations.
This would of course include crypto and blockchain innovations which would attract a lot of crypto firms to the country.
As a result of no taxes in this industry, it is also expected that this will accelerate El Salvador’s vision to integrate more blockchain and crypto innovations into its government operations.
After all, the country already has the well-known reputation of being the first country to make Bitcoin legal tender.
— Crypto Lalit (@CryptoLalit151) May 4, 2023
In March, President Bukele announced his intention to introduce a bill protecting technological advancements in the country. Subsequently, the bill was sent to Congress to eliminate taxes on a variety of innovations in the tech sector.
Now, the El Salvador president has officially signed a law eliminating all taxes on technology innovations. Additionally, Bukele took to Twitter to announce that the legislative action had been carried out and the bill had been signed.
The Innovations and Technology Manufacturing Incentives Act will likely attract tech developments to the country. Moreover, the elimination of taxes presents an economic benefit to a host of companies.
Conversely, El Salvador continues to maintain its commitment to a variety of tech innovations that are being developed.
The country already has a very pro-crypto regulatory environment for the industry and data shows that a lot of foreign investment has entered the country as a result.
This is contrary to many other countries around the world which are making it hard for crypto firms to do business due to unclear regulations.
With the passing of the bill to eliminate taxes on technology like Bitcoin, it is clear that El Salvador is one of the frontrunners when it comes to becoming financial centers.
Taxes that are removed include things like income taxes, property taxes, capital gains, and tariffs.
— CryptoSavingExpert ® (@CryptoSavingExp) May 4, 2023
Tax incentives under the newly signed Act suggest the administration is deftly serious about achieving financial hub status.
Meanwhile, under the guidance of the Council of Economic Advisers (CEA,)the U.S. administration has proposed the Digital Asset Mining Energy (DAME) tax.
The agency said a 30% tax on crypto miners is needed to limit the environmental and societal damage caused by crypto miners.
“Cryptominers’ high-energy consumption has negative spillovers on the environment, quality of life, and electricity grids where these firms locate across the country.”
Dennis Porter, the CEO of the Satoshi Action Fund, blasted the proposal, saying, if passed, DAME would drive innovation to friendlier jurisdictions – resulting in the loss of jobs and economic growth for the U.S.
President of El Salvador has officially signed a law eliminating all taxes on crypto and technology innovations.
— whalechart (@WhaleChart) May 4, 2023
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