The Legislative Assembly of El Salvador has unanimously passed a measure to eliminate income tax on foreign investments and remittances, reducing it from 30% to 0% without any limitations on the amount. President Nayib Bukele announced this development on the social media platform X on March 12:
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Source:
@nayibbukele
According to a separate post on X by Asamblea Legislativa, the legislative assembly of El Salvador, the measure received 69 votes out of a total of 84, presuming there were no abstentions or absentees.
Translated from Spanish by Google, El Salvador has undergone significant changes since Bukele’s election in 2019. In 2021, he declared Bitcoin (BTC) as legal tender across the country and acquired 200 BTC for the national treasury. Since then, El Salvador’s economy has demonstrated consistent growth. The country’s gross domestic product was $24.9 billion in 2019, as reported by the World Data Bank. By 2022, it had risen to $32.4 billion, and estimations predict a further 2.8% growth in 2023.
As recently reported by Cointelegraph, El Salvador’s purchase of Bitcoin in 2021 has resulted in a profit of $85 million, following BTC surpassing the $72,000 mark during the week of March 10.
Bukele was reelected on February 4, receiving a reported majority vote of 85% or more.
In a related development, El Salvador eliminated all taxes associated with tech innovation in April 2023. As previously reported by Cointelegraph, the country passed a bill that effectively abolished income, property, and capital gains taxes on technology innovations such as software programming, coding, apps and AI development, as well as computing and communications hardware manufacturing.