El Salvador’s president removes taxation of technical innovations
Nayib Bukele, president of El Salvador and Bitcoin supporter, has recently signed a law removing taxes on technological innovations in the country. The Innovation and Technology Manufacturing Incentive Act (ITMI) revealed a wide range of sectors where complete tax elimination applies.
While countries like the US administration want high tax payments on technological innovations like cryptocurrency mining, this new law can go a long way in attracting innovation-focused companies, which will bring development to the nation.
I just signed into law, the INNOVATION AND TECHNOLOGY MANUFACTURING INCENTIVES Act, which 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) 4 May 2023
El Salvador pushes for tech innovation by removing taxes
Nayib Bukele took to his official Twitter handle on May 4, 2023 to say that he signed the new law to ensure that taxes on property, income, capital gains, import tariffs, software and application programming, artificial intelligence, manufacturing of computers and communications hardware are completely removed going forward.
The signed ITMI law has been in the works, as early as March 2023, when the El Salvador president made it clear that he intended to introduce a bill to ensure innovative technological advances in the country.
Following his intentions, legislation was forwarded to Congress to eliminate taxation of technological innovations in the country.
This recently signed law is just one of the many efforts the El Salvadorian president has been pushing for the technological growth and development of the country.
In January 2023, a Forbes India report carried the news that El Salvador had established a legal framework and process for issuing Bitcoin-backed bonds, also known as “Volcano Bonds.”
El Salvador’s Bitcoin-backed bond was pushed for the payment of national debt, and developed a Bitcoin mining infrastructure by funding the construction of a project called Bitcoin City to scale sustainable crypto mining.
A welcoming nation for innovative tech and crypto mining firms?
The law signed by Nayib Bukele earlier today can promote tthe growth and technological development of El Salvador as a nation and for manufacturing, technology and crypto companies operating in the country. With the tax-free law applicable to the previously mentioned sectors, innovative companies abroad are given an incentive to move their operations to a country with positive tax legislation.
Nayib Bukele’s efforts to build a Bitcoin city near the Conchagua Volcano in the country will exponentially scale BTC mining activities by companies. The eEnergy required for mining will be obtained directly from the volcano, which generates hydrothermal energy.
While the US has recently proposed a 30 percent tax on crypto mining, El Salvador continues to foster a thriving tech innovation ecosystem.
BTC price trades below acriticaly resistance zone on the daily chart timeframe | Source: BTCUSD on TradingView.com
Featured image from NRP, chart from TradingView.com
