El Salvador ICT Digital Assets Law

The implementation of the Salvadoran Digital Assets Law can benefit U.S. companies specializing in information and communication technology (ICT) and financial services.

The Salvadoran Congress approved the Digital Assets Law in January 2023, which aims to promote transactions and issuances of digital assets. This law establishes the indefinite elimination of duties and taxes on digital investments’ nominal value and income. Issuers, certifiers, and service providers can also benefit from tax exemptions for activities related to digital asset development. This comprehensive exemption encompasses VAT, Income Tax, Municipal Tax, and other tax obligations.

All issuers, certifiers, service providers, and public offerings must be verified and registered at the National Commission of Digital Assets (CNAD). The CNAD is also responsible for authorizing, suspending, revoking, or canceling the registration of service providers and certifiers. Service providers will pay established fees to register at the CNAD and renew their registration annually. The issuers will pay an authorization fee to issue a public offering.

This law opens the door for companies with experience in the digital assets market as issuers, service providers, certifiers, or experienced investors.

This law went into effect on February 1st, 2023. A copy is available in El Salvador’s Official Gazette. Publishing Dates: January 24 and July 17, 2023.

For more information, contact the U.S. Commercial Service Office in San Salvador at office.sansalvador@trade.gov