El Salvador, the country that recognized Bitcoin as its official currency in September of last year, has once again brought positive news for the technology industry. President Nayib Bukele has signed a law that eliminates taxation on technological innovations in the country.
The law waives all taxes on technological innovations, software and app programming, artificial intelligence, as well as the manufacturing of computer and communication hardware. The goal is to promote technological development in the country and attract innovative companies.
The country takes another step towards promoting technology and innovation with this measure. In January, El Salvador passed a law creating a legal framework for all digital assets, as the country appears to be preparing for the issuance of Bitcoin bonds.
By abolishing taxation on technological innovations, El Salvador could become more attractive to technology-based companies and a preferred location for such businesses. In contrast to other countries like the United States, where the government is considering a 30% tax on Bitcoin mining, El Salvador is taking a different approach and encouraging companies to invest in technology and innovation.
This measure is a step in the right direction to unleash the potential of technology and innovation in El Salvador. We should continue to keep an eye on the country as it becomes increasingly appealing to technology-based companies. The reaction of other countries to this move and whether they will adopt is still unclear.