With investment projections, the government expects companies to generate more than 2,000 jobs.
Three laws and tax benefits will provide more than $200 million in investment in about twenty companies covered under the regulations between June 2023 and May 2024, according to the Ministry of Economy (Minec).
The report of work published by Minec reveals that the “Law on Industrial Free Zones and Marketing,” approved in 1990, but reformed in 2023 by the Legislative Assembly, benefited in the last year more than 10 companies that have planned ainvestment of $122.46 million.
Free zones allow the entry of goods as if they were not in local customs territory. Recent reforms added food production, processing or marketing to sectors receiving tax benefits.
Without specifying sectors, the government points out that these companies would be generating1,483 new jobs.
The law protects not only companies, but also developers.
Minec notes that two new free zones received tax benefits for the development, exploitation and administration of such projects.
Both free trade areas will be allocated$79.1 million in investmentand add more to the market89,000 square meters of industrial roof.
Technology sector
The document also includes other companies covered by the International Services Act, adopted in 2007, and focused on granting total exemption from income taxes for 15 years to companies in this sector, as well as to municipal companies (for 10 years) and on real estate transfers.
Following a reform in 2023, the cloud storage service was included among the information technology sectors.
Between 2023 and 2024, the government approved the benefits for five companies that will develop call center activities (call center), subcontracting of business processes (BPO), logistics and technology services operations.
“These companies will generate a projected investment of $8.41 million and 975 new projected jobs,” added Economy.
Manufacture
For its part, the Act on the Promotion of Innovation and Manufacturing of Technologies – benefited eight new companies and two natural people, which, according to the government, will invest$27.51 million and will generate 236 new jobs.
The regulations were sanctioned by the President of the Republic, Nayib Bukele, on May 4, 2023. The law exempts individuals and companies that invest in software and technology from taxes.
This month, the Minister of Economy, María Luisa Hayem, said they were already25 companieswho had registered to benefit from this law. The capital is from El Salvador, the United States and South America.
From June 2023 to May 2024, Minec recorded more than $4 million in seed capital investment and anchoring increases, from overseas and local. These resources were used by 52 companies related to call centers, renewable energy, trade, air transport, construction and business processes.
The government says that during this period 1,326 companies were also provided with advice on aspects such as the registration of capital and company formalization.
In short, the personalized attention included 185 investors, among those who foresee expansion or new projects, who, if their projects are implemented, could inject more than $2.228 million into the country.
This article has been translated after first appearing in Diario El Mundo