{"id":138589,"date":"2021-09-13T15:20:35","date_gmt":"2021-09-13T15:20:35","guid":{"rendered":"https:\/\/precoinnews.com\/?p=138589"},"modified":"2021-09-13T15:20:35","modified_gmt":"2021-09-13T15:20:35","slug":"el-salvador-wont-tax-foreign-investors-on-bitcoin-profits","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/el-salvador-wont-tax-foreign-investors-on-bitcoin-profits\/","title":{"rendered":"El Salvador Won&#039;t Tax Foreign Investors on Bitcoin Profits"},"content":{"rendered":"<h3>Key Takeaways<\/h3>\n<ul>\n<li>Last week, El Salvador became the first country to officially recognize Bitcoin as legal tender.<\/li>\n<li>The country now reportedly plans to attract foreign investments by exempting foreign investors from paying taxes on Bitcoin gains.<\/li>\n<li>The Salvadoran government will reportedly trace Bitcoin transactions on its official BTC wallet Chivo.<\/li>\n<\/ul>\n<p><span>El Salvador is reportedly moving to exempt foreign investors from paying taxes on their Bitcoin gains.&nbsp;&nbsp;<\/span><\/p>\n<h2><strong>No Bitcoin Taxes for Foreigners<\/strong><\/h2>\n<p><span>El Salvador plans to make foreign investors exempt from paying taxes on Bitcoin gains, Javier Argueta, legal adviser to the Salavadoran President Nayib Bukele reportedly<\/span><span>&nbsp;told Agence France-Presse (AFP).&nbsp;<\/span><\/p>\n<p><span>&ldquo;If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment,&rdquo; Argueta reportedly told AFP, adding that foreign Bitcoin investors would not have to pay capital gains or income taxes on Bitcoin transactions.&nbsp;<\/span><\/p>\n<p><span>El Salvador made history on Sep. 7 by becoming the first country to officially grant Bitcoin&mdash;a non-fiat currency&mdash;legal tender status. While the move was widely celebrated by the crypto community, many experts and regulators have described it as risky, citing environmental, transparency, and volatility concerns.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/09\/06164628\/SIMETRI-banner-square-090621.png\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/07\/20041635\/5.gif\"><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/bit.ly\/3rrBc6j\" width=\"1\" height=\"1\" border=\"0\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/08\/20040114\/Phemex-Category-Banner-Right-Side-082021.png\"><\/p>\n<p><span>Commenting on the risks of potential use in illegal activities, Argueta noted that the Salvadorean government has implemented &ldquo;relevant mechanisms&rdquo; to ensure traceability of Bitcoin transactions on the country&rsquo;s official Bitcoin wallet Chivo. He said:<\/span><\/p>\n<blockquote>\n<p><span>&ldquo;We are implementing a series of recommendations from international institutions against money laundering.&rdquo;<\/span><\/p>\n<\/blockquote>\n<p><span>Concerning potential volatility issues, Argueta said that the Chivo wallet would also temporarily halt Bitcoin transactions if Bitcoin&rsquo;s value collapses to subdue the impact of extreme volatility or price fluctuations.<\/span><\/p>\n<p><span>That being said, using Chivo is optional for Salvadoreans, meaning they&rsquo;re free to use any Bitcoin wallet available on the market.&nbsp;<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/09\/06164628\/SIMETRI-banner-square-090621.png\"><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/static.cryptobriefing.com\/wp-content\/uploads\/2021\/09\/05235752\/Sanctor-demo-day-square.png\"><\/p>\n<p><span>El Salvador&rsquo;s plan to make Bitcoin legal tender is largely motivated by the fact that over 70% of its citizens have no access to banking services, while remittances from abroad comprise nearly a quarter of the country&rsquo;s GDP, with around the same percentage of the population receiving them. Announcing the plan at the Bitcoin 2021 conference back in June, President Bukele said:<\/span><\/p>\n<blockquote>\n<p><span>&ldquo;In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy. And in the medium and long term, we hope that this decision can help us push humanity, at least a tiny bit, into the right direction.&rdquo;<\/span><\/p>\n<\/blockquote>\n<p><span>The move, however, was met with some pushback from supranational financial regulators, namely the International Monetary Fund (IMF) and the World Bank. Speaking at a press conference only a day after the bill was passed, IMF&rsquo;s Director of Communications Gerry Rice said that the move raises &ldquo;a number of macroeconomic, financial and legal issues that require very careful analysis.&rdquo;&nbsp;&nbsp;<\/span><\/p>\n<p><span>The World Bank also refused to give El Salvador assistance with implementing Bitcoin payments, citing environmental and transparency shortcomings as the reason.<\/span><\/p>\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See full terms and conditions.<\/p>\n<p>Source: <a href=\"https:\/\/cryptobriefing.com\/el-salvador-spares-foreign-investors-from-tax-on-bitcoin-profits\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Last week, El Salvador became<\/p>\n","protected":false},"author":3,"featured_media":138588,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>El Salvador Won&#039;t Tax Foreign Investors on Bitcoin Profits - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/el-salvador-wont-tax-foreign-investors-on-bitcoin-profits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"El Salvador Won&#039;t Tax Foreign Investors on Bitcoin Profits - 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