El Salvador, Total Tax Exemption for Tech!

Salvadoran President Nayib Bukele is once again surprising the international community by taking a stand in favour of technological innovation. In a bill that he plans to submit to Congress, Bukele plans to exempt all technology-related businesses from taxes. This initiative is likely to attract considerable interest from many companies in the sector, which may consider setting up large-scale operations in El Salvador.

Nayib Bukele wants to eliminate taxes for technology companies

In order to stimulate technological innovation, President Nayib Bukele, a big supporter of Bitcoin, intends to submit a bill to the Salvadoran Congress next week. This proposal aims to remove all taxes for companies involved in technological innovation, as well as for manufacturers of computer and communication equipment.

This measure will apply to different areas, including:

• Programming
• Application development
• The development of Artificial Intelligences

This is at least what Nayib Bukele announced on his official Twitter account on Friday, March 24, specifying that this list is not exhaustive.

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.

— Nayib Bukele (@nayibbukele) March 24, 2023

President Bukele is trying to make El Salvador a reference in technological innovation. He said the proposed law is part of his government’s growing efforts to make the country a hub for technological innovation and entrepreneurship in Central America.

The bill was welcomed by Binance CEO Changpeng Zhao, who expressed his support, saying that the company had already established a customer support center in El Salvador the previous year. This initiative by Bukele in support of new technology companies may encourage Binance to continue expanding its operations in the country.

#Binance built an Customer Support Center in El Salvador from last year with about 60 staff already. Let's do more! https://t.co/7nQXdmhnrJ

— CZ 🔶 Binance (@cz_binance) March 24, 2023

While the U.S. is cracking down on cryptocurrency businesses, El Salvador is taking the opportunity to create a home for new technology enthusiasts as well as the crypto ecosystem. Will El Salvador become the most advanced country in the world in this sector? Its developer training program and this latest initiative are moving in that direction, but it’s a tough fight with the United Arab Emirates…