The Central American country has voted in favour of the tax exemptions, in a bid to make the country a more attractive destination for technological companies, entrepreneurs and investors.
The tax exemptions - which are anticipated to be kept in place for the next 15 years - will be available for eligible companies developing artificial intelligence (AI) tools, as well as other computer programming work. Lawmakers approved the motion with 69 voting in favour among the 84-member unicameral legislature.
"With these exemptions, we are facilitating the development of the technological sector in our country, and manufacturing as well, which will help a new industry emerge," said lawmaker Rodrigo Ayala during the debate.