No tax on Bitcoin profits in El Salvador

No tax on Bitcoin profits in El Salvador

To encourage the adoption of Bitcoin, The Government of El Salvador will exempt foreign investors to pay the capital gains tax and income tax on Bitcoin transactions as reported by Presidential legal counsel.

On September 10, Agence France-Presse reported that the president Mr. Nayib Bukele’s office is planning to encourage foreign direct and indirect investment through the promotion of tax exemptions on Bitcoin. Legal advisor to the President, Javier Argueta said,

If a person has assets in bitcoin and makes high profits, there will be no tax. This (is done) obviously to encourage foreign investment.

On September 7, The Central American Country, El Salvador, the first in the world, made Bitcoin as a legal tender. The government has launched its own BTC wallet, Chivo, in collaboration with companies like Silvergate Bank, Athena Bitcoin, Bitso and blockchain firm Algorand. The government has also announced that there will be no transaction fee on all transactions involving Bitcoin.

Chivo wallet app was temporarily taken down after it was launched on September 7 because of capacity issues causing installation errors. The President said that the app would be disconnected temporarily to fix all the issues. He assured that the app would be available in every country and to everyone.

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