In a move aimed at boosting technology innovation and attracting more investment in the sector, El Salvador’s President Nayib Bukele has announced his intention to introduce a bill that would eliminate taxes on technology innovations.



Bukele made the announcement in a twee t, stating that “Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains, and import tariffs) on technology innovations, such as software programming, coding, apps, and AI development,”



President Nayib Bukele leads tech adoption in LATAM



El Salvador’s President Nayib Bukele announced on Thursday that he will send a bill to the country’s Congress next week that will eliminate all taxes on technological innovations as well as the manufacturing of computing and communications hardware.




Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing. — Nayib Bukele (@nayibbukele) March 24, 2023




It is unclear whether this measure will apply to bitcoin (BTC) applications, but El Salvador and its president are known for being bitcoin-friendly, with the country becoming the first to make the cryptocurrency legal tender in 2021. Earlier in 2023, the country’s legislature passed legislation paving the way for a bitcoin-backed bond.



Bukele added that the tax break would also apply to computing and communications hardware manufacturing. The Salvadoran president is eager to turn his country into a cryptocurrency hotspot, with plans to make bitcoin legal tender in 2021 and to build the world’s first “bitcoin city.”



In response to Bukele’s announcement, Binance CEO Changpeng Zhao voiced his support for the initiative and noted that the crypto exchange had already established a Customer Support Center in El Salvador with approximately 60 employees the previous year. The company intends to expand its operations in the country to take advantage of the tax incentives proposed by the bill, as indicated by Zhao’s statement, “Let’s do more!”




#Binance built an Customer Support Center in El Salvador from last year with about 60 staff already. Let's do more! https://t.co/7nQXdmhnrJ — CZ