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El Salvador\u2019s president, Nayib Bukele, has enacted a law that eliminates all taxes on technology innovations, software and app programming, AI, computer, and communications hardware manufacturing. The law is expected to boost the country\u2019s technology sector, generate more jobs for its population, and attract foreign investment.<\/strong>\n<\/p>\n \n I\u2019ve 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.<\/p>\n<\/blockquote>\n \n El Salvador\u2019s director of the Central American Bank for Economic Integration (CABEI), Luis Rodr\u00edguez, was quoted by Diario El Salvador as saying: \u201cWe welcome this commitment to the future of El Salvador, we are ready as CABEI to accompany this entire process.\u201d CABEI is a regional entity established with the objective of promoting economic integration and balanced economic and social development in Central America.<\/p>\n \u00c9rick Chac\u00f3n, president of the Salvadoran Fintech Association expressed his excitement about the bill to the publication when it was still being discussed in the Legislative Assembly weeks ago. He said that the new tax incentives would allow the ecosystem to expand and that these are important steps to position El Salvador as a technology and innovation hub.<\/p>\n El Salvador\u2019s new tax law is welcomed by many on social media. Venture capitalist Balaji Srinivasan commented on Twitter: \u201cIt\u2019s not about first world and third world anymore. It\u2019s about ascending world and descending world. And under @nayibbukele\u2019s leadership, El Salvador has entered the ascending world.\u201d<\/p>\n Dr. Rafael Fonseca, director for Innovation and Transformational Relationships at Mayo Clinic\u2019s campus in Arizona, tweeted:\n<\/p>\n If you are not paying attention to what is going in El Salvador you should. The sound of business moving there will be loud.<\/p>\n<\/blockquote>\n \nBukele Signs Law to Boost Technology Industry in El Salvador<\/h2>\n
\nThe president of El Salvador, Nayib Bukele, announced Thursday on Twitter:\n<\/p>\n\n
\nCommenting on the new tax law, Salvadoran Minister of Economy Mar\u00eda Luisa Hayem described: \u201cEl Salvador is ready to attract new investments in the technology sector, and thereby generate more jobs for our population.\u201d<\/p>\n\n
\nIn September 2011, El Salvador became the first country to make bitcoin legal tender alongside the U.S. dollar. Since then, the country has accumulated<\/a> thousands of BTC<\/a> and is regularly buying<\/a> bitcoin for its Treasury.<\/p>\n