Officials of El Salvador are planning to eliminate all possible tax on Bitcoin trade to encourage foreign investment.
As we know, El Salvador’s Bitcoin law not only enables Salvadoran to pay in Bitcoin but there are many types of things associated with it and that can give huge advantages for El Salvador’s citizens.
In an earlier statement, it was clear that the El Salvador government will not impose any kind of tax on the gains of Bitcoin Investment and also Bitcoin to dollar conversion free of commission.
But now this matter of taxation on Bitcoin trading is in light, after the statement of Javier Argueta, a legal adviser to President Nayib Bukele.
According to a report published by Agence France-Presse on 10 September, Javier suggested making the tax law for Bitcoin more favourable for people, so that they can attract the foreign investment.
If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment,” Argueta said, adding that El Salvador will impose no taxes on “either the capital increase or the income
Javeir also claimed that the government of El Salvador would keep full tracking of the Bitcoin transactions made through the Chivo wallet, official digital Bitcoin wallet of El Salvador, to keep the use of Bitcoin away from illegal use. And also they are following all possible recommendations to prohibit Money Laundering activities.
“We are implementing a series of recommendations from international institutions against money laundering”
Further Javier claimed that the government can stop the Chivo wallet’s transactions in case of need like high volatility in the price of Bitcoin, to keep the economy stable.
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