El Salvador has eliminated income tax on profits gained by foreign investors as well as money transmitted from abroad by Salvadoran foreign residents. This move primarily targets creating more foreign dollars and boosting the economy. It would help stimulate the economy, thereby generating numerous employment opportunities within the country.
The President shared the news on the X platform, stating that the new regulation is 0% instead of 30%, also without a restriction limit. The Parliament voted on the reform in acceptance with a majority of 69 votes.
This is a recent move after a series of other progressive economic policies made by El Salvador. As far as sweeping changes are concerned, El Salvador made history in 2021 by adopting Bitcoin as an official means of exchange.
Since then, the nation’s GDP has been recording moderate growth. According to the most recent sources, they booked a sizable margin from Bitcoin. El Salvador has been able to generate an approximate amount of over $85 million from Bitcoin since it hit its high price level of $72,000.
El Salvador continued to enhance its tech industry with the elimination of taxes on technological innovation in April 2023.
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