El Salvador will exempt foreign investors’ Bitcoin profits from tax.
Javier Argueta, legal adviser to El Salvador’s President Nayib Bukele, told AFP news agency that foreign investors’ earnings from Bitcoin will be exempt from tax. The country is trying to encourage foreign investment with this move. Argueta used the following statements on the subject:
“If a person owns Bitcoin and earns high profits from it, there will be no tax. There will be neither capital increase nor tax to be paid on income.”
Argueta also wants to reduce the risk of illegal use of Chivo, the Bitcoin wallet that El Salvador has developed for citizens to use. Argueta said that in this context, various mechanisms will be developed for traceability.
As we reported earlier, El Salvador enacted the Bitcoin law on September 7. With the enactment of the law, the country’s largest financial institutions such as Bancoagrícola began offering Bitcoin services to citizens.
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