On Thursday, the President of El Salvador announced that the nation had enacted a law which would eliminate taxes on innovative technologies, such as software creation, coding, and the development of Artificial intelligence, among other technological innovations. President Nayib Bukele has bee noted as eager to develop his nation’s technology sector, to build El Salvador into a technology leader in Latin America.

According to a report from cryptocurrency company Binance, the new law will exempt all technology companies from all taxes for a minimum of 15 years.

Bukele wrote on Twitter, “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.”

It is expected the law will “contribute significantly to the country’s economic development,” and create more jobs for the new generations of younger people. Experts note it will also foster the development of Artificial Intelligence technologies in El Salvador.

President Bukele, at a relatively young 41 years of age, has bet heavily on emerging technologies as a means to advance El Salvador’s economy. In June of 2021, El Salvador became the first nation to openly embrace the cryptocurrency Bitcoin as legal tender, despite the disapproval of the International Monetary Fund.

The move was widely controversial. However amid the collapse in the price of Bitcoin, El Salvador’s government has continued to buy the tokens, despite the rash of bankruptcies and scandals within the sector.

Bukele has even moved forward on a project which aims to use the heat from El Salvador’s volcanoes to produce geothermal power to mine the digital cryptocurrency.

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