The recent tax exemption offered by El Salvador’s government is an attempt to further speed up the bitcoin investments in the country. The government in El Salvador is looking to attract foreign investors to invest in the country. That’s why the tax exemption can come in handy.
The reports have confirmed that soon the government will begin legislation to a wave of the tax. Crypto investors will be paying taxes over capital gains and income tax on Bitcoin as well. The suggestion is being proposed by the country’s Presidential legal team. The reports have also confirmed that in a recent meeting, Javier Argueta, a legal advisor to President Nayib Bukele, shared his vision that the best option for the country to attract foreign investors is to wave the Taxes.
“If a person invests in El Salvador and he earns massive profits on investment in bitcoin, there will be no taxes,” Argueta said. He said that this proposed legal advice shows the country’s good intentions in making Bitcoin trade user-friendly and easy to access for all.
El Salvador will not impose any sort of taxes either on the capital gain and income gain. However, the government in return luring the investors to use the country’s official Bitcoin Wallet, Chivo, the aim is to avoid unethical use of cryptocurrency in the country. The use of Chivo means trade being controlled by the government, there is no room for money laundering and another digital scam. Apart from that, Chivos is protected by the state, so breaching is impossible.
El-Salvador is trying to achieve multiple benefits from this move, which includes the stream of foreign investment, safe crypto trade, protected by the government. That’s mean more and more people are now interested in investing in Bitcoin.
Previously, El Salvador also accepted Bitcoin as legal tender. El Salvador is the only country that has permitted bitcoin as legal tender. This means that all the local independent and institutional traders will now have to accept bitcoin as a means of payment.
El Salvador has also allowed users to convert their Bitcoins in U.S dollars by using the special ATMs provided by the government in specific places. However, the government has waived the transactions fees as well. El-Salvador has also launched its BTC wallets platform Chivo. The government partnered with Bitso crypto exchange and Silvergate Bank to launch Chivo.
However, instantly after its launch, the network was shut down for maintenance. However, multiple users still facing the issue while using the network. But these problems would soon be rectified by the Authorities. El-Salvador is working on making crypto an easily accessible and secured trading sector.