The Legislative Meeting of El Salvador has permitted a measure to scale back the revenue tax on overseas investments and remittances from 30% to 0% with no efficient limits on the quantity.
President Nayib Bukele relayed the information on the X social media platform in a March 12 submit:
“Congress has reformed our revenue tax regulation, for worldwide investments and cash transfers, dropping the speed from 30% to 0%.”
In a separate X submit, Asamblea Legislativa, the legislative meeting of El Salvador, mentioned that the measure was permitted with 69 votes, out of, presumably, 84 (barring any abstaining or absent votes).
Per a translation from Spanish by Google:
“With 69 votes in favor, we reform the Revenue Tax Legislation in order that household remittances or any capital from overseas is launched into the nation freed from cost of this tax, whatever the quantity.”
El Salvador has skilled radical change within the wake of Bukele’s 2019 election. In 2021, he declared Bitcoin (BTC) authorized tender all through the nation and bought 200 BTC for its coffers. Within the subsequent years, El Salvador’s financial system has proven regular progress. In 2019, its gross home product was $24.9 billion, according to World Knowledge Financial institution. By 2022, it reached $32.4 billion. Estimates additionally point out 2.8% progress for 2023.
Now, as Cointelegraph not too long ago reported, El Salvador’s 2021 Bitcoin buy has generated $85 million in profit since BTC crossed the 72,000 threshold the week of March 10.
Bukele was reelected on Feb. 4 with a reported 85% or extra of the vote.
Associated: Cointelegraph’s top people in crypto and blockchain #69: Nayib Bukele
This most up-to-date tax code adjustment comes after El Salvador eliminated all taxes associated to tech innovation in April 2023. As Cointelegraph reported at the time, the nation handed a invoice to successfully remove revenue, property, and capital beneficial properties taxes on expertise improvements “akin to software program programming, coding, apps and AI improvement, in addition to computing and communications {hardware} manufacturing.”
