El Salvador President Bans Technological Innovation Taxes

President Nayib Bukele of El Salvador signed a law today that eliminates taxes on new technologies. The bill was announced in March of this year. Bukele also said the Innovation and Technology Manufacturing Incentive Act would eliminate necessary tariffs on income, land, capital gains, and technology innovations.

The news clarifies that El Salvador is an excellent place to build technology. Bukele also said the new law guards “technology innovations, software and app programming, AI, computer, and communications hardware manufacturing.”

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

El Salvador President Signs Law Eliminating Technology Taxes

President Bukele said he would offer a bill to protect the country’s technological progress in March. After that, the bill was sent to Congress to eliminate taxes on several tech developments.

Now, the president of El Salvador has signed a law that eliminates all taxes on new technologies. Bukele also used Twitter to say that the parliamentary action had happened and that the bill had been signed. 

With the help of the Innovations and Technology Manufacturing Incentives Act, the United States is likely to get more tech companies to move here. Also, getting rid of taxes is good for the economy of many businesses. On the other hand, El Salvador is still committed to several tech advances that are being made. 

Regulatory actions have slowed down some progress in the tech business. In particular, fuzzy rules have stopped the growth of generative AI and crypto. With this new law, El Salvador has moved quickly to create an alternative atmosphere.