No taxes on bitcoin in El Salvador
Salvadoran presidential legal advisor Javier Argueta told Agence France Presse (AFP) that foreign investors who want to build their infrastructure with Bitcoin will not have to pay taxes on the profits of the digital currency. In doing so, he also explained that foreign Bitcoin investors will not have to pay capital or income taxes on the transactions.
If a person has assets in Bitcoin and makes large profits, no taxes will be due. This is, of course, done to encourage foreign investment.
Economic boom due to foreign companies?
Last Tuesday, September 7, El Salvador made history by adopting Bitcoin as legal tender. The main purpose of this is to greatly weaken the country’s dependence on the United States. Therefore, taxes on Bitcoin will be completely eliminated, so foreign investors who want to invest in El Salvador can now do so completely without the influence of the dollar.
In this regard, it is noticeable that Bitcoin is more favored by the government compared to the dollar in the poor-sanctioned country. This is because before, most of the trading was done in dollars. As soon as political differences with the USA arise, the exchange rate can be strongly manipulated by the restricted trade. Bitcoin removes this dependency completely.