El Salvador's Bill On Eliminating Taxes On Tech Innovations Signed Into Law
The Innovation and Technology Manufacturing Incentive Act eliminates income, property, capital gains, and important tariffs for technology innovations.
- The country's president took to Twitter to share the news:
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
- The bill aims to strengthen the country's competitiveness and sustainable economic development by promoting innovation and technology manufacturing in the national territory.
- According to EY analysis of the bill, "commercial activities that are developed in at least one of the following areas may qualify for the benefits proposed in the Bill:"
- "Programming, management, maintenance, consulting and analysis of computer systems or software."
- "Development and commercialization of cloud computing and data flow services, artificial intelligence, massive data analysis, distributed log technology, cybersecurity solutions."
- "Technologies based on manufacturing of parts, materials and equipment or facilities, assembly, including manufacturing plants for technology equipment or hardware, semiconductors, communications technology, robotics, nanotechnology, aircraft and unmanned vehicles."
- "Engineering and systems technologies necessary for the integration of basic industrial technologies into global production chains."
