5 NEW LEGAL PROVISIONS FOR COMPANIES THAT WILL MARK 2025

In the past year, El Salvador has taken significant steps towards modernizing its legal framework to meet the demands of the digital age. Below are five key laws passed in November 2024, aimed at strengthening cybersecurity, protecting personal data, incentivizing the technology industry, updating labor legislation, and facilitating entrepreneurship. These reforms not only reflect the country's commitment to innovation and security but also open new opportunities for economic growth and investment.

1. 1. NEW CYBERSECURITY LAW: This law, passed in November 2024, establishes measures to protect critical information infrastructure and improve coordination and response to cybersecurity incidents. All government entities and companies managing public resources must comply with this regulation.
   2. PERSONAL DATA PROTECTION LAW: Also passed in November 2024, this law requires companies to implement security measures to protect their customers' personal information. The penalties for non-compliance are significant, underscoring the importance of data protection in the business environment.
   3. TAX EXEMPTION FOR THE TECHNOLOGY INDUSTRY: In an effort to attract technological investments, a law has been passed that eliminates income, profit, and property taxes for 15 years for companies developing artificial intelligence, software, data analytics, and cybersecurity solutions.
   4. UPDATE OF LABOR LEGISLATION: Adjustments have been made to labor legislation to adapt to new technologies and work methods. This includes regulations on telecommuting and the obligation for companies to provide the necessary tools for employees to work remotely.
   5. REFORMS IN THE COMMERCIAL CODE: Provisions have been introduced to facilitate the creation and management of Simplified Joint Stock Companies (SAS). These reforms aim to streamline bureaucratic processes and promote investment and entrepreneurship in the country.

These new laws represent a significant advancement for El Salvador, positioning it as a country committed to innovation and the protection of its citizens in the digital age. With these reforms, it is expected not only to improve security and privacy but also to attract investments and foster economic growth. The future of El Salvador in the technological and business fields looks promising, thanks to these legislative initiatives.