May 5 (Cointime) - Nayib Bukele, the President of El Salvador, announced on May 4th that he has enacted a law that eliminates taxes on "technology innovations, software and app programming, AI, computer and communications hardware manufacturing."
El Salvador has been a pioneering nation. In September 2011, it became the world's first country to officially recognize bitcoin as legal tender, along with the US dollar. Subsequently, the country has amassed thousands of BTC and continues to purchase bitcoin regularly for its Treasury.
I’ve just signed into law, the INNOVATION AND TECHNOLOGY MANUFACTURING INCENTIVES ACT, that eliminates all taxes (income, property, capital gains and import tariffs) on technology innovations, software and app programming, AI, computer and communications hardware manufacturing. pic.twitter.com/rZtGzPgVzW
— Nayib Bukele (@nayibbukele) May 4, 2023
El Salvador’s new tax law is welcomed by many on social media. Twitter user @IAmRyanWells described:
"This new law will undoubtedly boost the technology industry, attracting local and foreign investors. This will create more job opportunities and promote economic growth in El Salvador. Congratulations on a bold move towards a more innovative future."
Venture capitalist Balaji Srinivasan commented on Twitter:
“It’s not about first world and third world anymore. It’s about ascending world and descending world. And under @nayibbukele’s leadership, El Salvador has entered the ascending world.”
Dr. Rafael Fonseca, director for Innovation and Transformational Relationships at Mayo Clinic’s campus in Arizona, tweeted:
If you are not paying attention to what is going in El Salvador you should. The sound of business moving there will be loud.
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