El Salvador approved the abolition of taxes on artificial intelligence and other technology companies for 15 years.
El Salvador’s ruling party lawmakers approved on Tuesday (April 18th) a bill that would remove taxes on companies developing artificial intelligence and other computer programming efforts to make the country a more attractive technology hub.
Customs Taxes Will Also Be Exempted
The approved bill would exempt eligible companies from paying income taxes, capital gains and local government taxes, as well as customs duties on imported goods needed by tech businesses.
The bill, which was discussed late on Tuesday, passed the parliament with a vote of 69 to 84. New Ideas MP Rodrigo Ayala, who commented during the discussion of the bill, said: “With these exemptions, we facilitate the development of the technology sector in our country and the production that will help the emergence of a new industry.”
New tax incentives for the technology sector were also supported by President Nayib Bukele.
The latest bill approved is just one of the Central American country’s moves towards becoming an emerging hub for innovation. El Salvador made a worldwide impact in 2021 as the first country to accept Bitcoin as a legal tender.
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