El Salvador removes all taxes related to tech innovation for economic growth
El Salvador, the first country to establish Bitcoin (BTC) 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.”
Supporting this initiative is the establishment of the Bitcoin office, a regulatory body for conducting joint initiatives with Bitcoin entrepreneurs and companies. According to Asociación Bitcoin de El Salvador (Bitcoin Association of El Salvador), ONBTC aims to “position the country in the world as a technological and economic power.”
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
In addition to attempting a financial comeback, Bukele’s ongoing efforts to reinvent El Salvador include promoting
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