Firing people off to eliminate taxes doesn’t solve this crisis.

Summary:

The Law for the Promotion of Innovation and Manufacturing of Technologies aims to contribute to economic growth and sustainable development by promoting innovation, technology manufacturing, and skilled workforce growth. Its purpose includes accelerating technological innovation, developing innovative materials, leading development in Latin America, expanding Salvadoran human talent, improving supply chain access, and providing tax incentives for investment and development.

Key points:

1. Applies to natural or legal persons who develop new investments in innovation or technology manufacturing.

2. Tax incentives include total exemption from Income Tax, municipal taxes on net assets, Capital Gains, and Import Duty for 15 years.

3. Beneficiaries must meet requirements including being registered with Salvadoran tax authority and having a valid Qualification Agreement.

4. Bilateral agreements with advanced nations and cooperation agreements with multinational companies are encouraged.

5. Infractions are classified as minor, serious, and very serious, with corresponding fines.

6. The Ministry of Economy will evaluate the effectiveness of tax incentives after three years.

7. Supplementary application of the Tax Code and Customs Legislation is allowed.

8. The law enters into force 30 days after its publication in the Official Gazette.