Technology innovations such as software programming, coding, apps and AI development, and computing and communications hardware manufacturing will be exempted from taxes in El Salvador.
El Salvador was the first country to establish BTC as a currency, determined to abolish all taxes on technological innovation. This measure coincided with the creation of the Salvadoran National Bitcoin Company Office (ONBTC), also known as the "Bitcoin Company Office".
September 1st, when Bitcoin is legal. In July 2021, the President of the United States of El Salvador, Nayeb Bukeley, saw the technology as a means of fighting hyperinflation and reliance on the dollar. Over the past 18 months, El Salvador has redesigned its development strategy for bitcoin investment and has repeatedly used capital gains to rebuild the country.
To promote this development strategy, Bukele feels that the tax burden should be gradually reduced to accelerate the trend of technological development. As agreed, on April 1, Buchler formally submitted a decree to the U.S. Congress to efficiently abolish technological innovations, such as programming, numbering, application software and artificial intelligence development. (and its computing communications hardware configuration manufacturing) all corporate income tax, direct tax and income tax.
The application of this advocacy refers to the creation of Bitcoin offices, a regulatory authority that is responsible for joint advocacy with Bitcoin entrepreneurs and companies. According to the Salvadoran Bitcoin Association, ONBTC is committed to positioning its country as a technological and economic power.
In addition to trying to start over in the financial industry, Bukele is in the process of restructuring El Salvador's persistent efforts to promote tourism, crack down on terrorist organizations and create regional business squares.
In early 2023, El Salvador provided a legal framework for volcanic bonds, which are applicable to bitcoin under the law.
The technical term for volcano bonds comes from Bitcoin City, which will become a renewable login password mining core, powered by the hydrothermal power of the surrounding Kongchagua volcano.
Magazines and periodicals: learn what it looks like to use bitcoin in El Salvador