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0 CommentsTechnology innovations such as software programming, coding, apps and AI development, and computing and communications hardware manufacturing will be exempted from taxes in El Salvador.
El Salvador, the first country to establish Bitcoin as a legal tender, made another historic decision to eliminate all taxes on technology innovations. The move runs parallel to the establishment of the National Bitcoin Office (ONBTC) of El Salvador, a.k.a. the Bitcoin office.
When legalizing Bitcoin on Sept. 7, 2021, El Salvador President Nayib Bukele saw the technology as a means to counter the hyperinflation and dependence on the US dollar. Over the past 18 months, El Salvador restrategized Bitcoin investments and utilized capital gains in numerous instances to rebuild the nation.
Moving ahead into this strategy, Bukele believed in winding down tax requirements as a means to expedite technological development. As promised, on April 1, Bukele officially sent a bill to Congress — effectively eliminating all income, property, and capital gains taxes on technology innovations “such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing.”
Ayer tuvimos una reunión muy especial con la @bitcoinofficesv
Las empresas de #Bitcoin y los reguladores llevan iniciativas conjuntas para aportar aún más a #ElSalvador
Como miembro de @asobitcoin recibirás este y muchos más beneficios exclusivos! pic.twitter.com/OFgzpO4GA6
— Asociación Bitcoin de El Salvador (@asobitcoin) March 30, 2023
In addition to attempting a financial comeback, Bukele’s ongoing efforts to reinvent El Salvador include promoting tourism, countering terrorism and building business hubs in the region.
In the start of 2023, El Salvador passed a legislation providing the legal framework for a Bitcoin-backed bond — known as the Volcano Bond.
#Plenaria90✍🏻 Con 62 votos a favor, creamos la Ley de Emisión de Activos Digitales. pic.twitter.com/g1poXwLoH3
— Asamblea Legislativa 🇸🇻 (@AsambleaSV) January 11, 2023
The nomenclature of the volcano bonds is derived from Bitcoin City’s location, which is set to become a renewable crypto-mining hub powered by hydrothermal energy from the nearby Conchagua volcano.
