El Salvador Signs Into Law Eliminating Taxes on All Technology Innovations

President Nayib Bukele of El Salvador today signed into law the Innovation And Technology Manufacturing Incentives Act.

This law aims to eliminate all taxes on technology innovations including but not limited to:

• Software and app development
• A.I. development
• Cybersecurity solutions
• Technology hardware manufacturing (Ex: Semiconductors, Robotics, nanotechnology)

I’ve 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. pic.twitter.com/rZtGzPgVzW

— Nayib Bukele (@nayibbukele) May 4, 2023

Safe Haven for Tech

By signing the Innovation And Technology Manufacturing Incentives Act into law, El Salvador just became one of the most attractive countries for new innovations.

In September of 2021, El Salvador became the first country to make Bitcoin legal tender. In an effort to promote and popularize the digital currency.

Given the rise of A.I. in recent months, El Salvador may attract new startups and innovations to the country.

With more friendly regulations being signed into law, Crypto companies could also view El Salvador as a preferred choice to call home.

Coinbase recently sued the Securities and Exchange Commission in an effort to provide regulatory guidance for the Crypto industry.

Today, we filed a narrow action in the U.S. Circuit Court to compel the SEC to respond “yes or no” to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1/4 https://t.co/rlsS1DIFfl

— paulgrewal.eth (@iampaulgrewal) April 25, 2023

Gary Gensler, Chairman of the Securities and Exchange Commission was unable to answer whether ETH is a commodity or a security in a testimony in front of Congress back in April.