El Salvador President Signs Law to Eliminate Taxes on Technology Innovations

El Salvador President Nayib Bukele has signed into law the Innovation and Technology Manufacturing Incentive Act, which eliminates taxes on technology innovations, including income, property, capital gains, and important tariffs. This move reaffirms El Salvador’s stance as a conducive environment for the development of technology and serves to protect tech-related sectors such as software and app programming, AI, computer, and communications hardware manufacturing. The bill was announced in March of this year.