El Salvador removes income taxes for money from abroad

El Salvador's Congress approved on Tuesday a reform to remove income taxes previously imposed on money from abroad, in a move to attract more foreign investment.

Money flows from abroad in forms such as remittances and investments in companies will now be exempt from tax, lawmakers said. Prior to the reform, incomes equal to or greater than $150,000 had to pay a rate of 30% at the time of entry into the country.

"The initiative aims to stimulate domestic and foreign investment to boost the economy and generate better and more employment opportunities," said lawmaker Suecy Callejas in Congress when defending the reform.