El Salvador’s Legislative Assembly approved a new tax amnesty for all taxpayers who have pending returns. Therefore, this incentive eliminates penalties and interests, until next 1st December, for unpaid taxes that each taxpayer has. 

Through this law, the Ministry of Finance expects to collect approximately $40 million owed by individuals and legal entities who, for various reasons, have not been able to catch up with their payments. Those involved in the following situations will therefore be able to waive and defer payment by paying a monthly fee: 

• Pending procedures with these institutions: General Direction of Taxes and Customs, as Republic’s Public Prosecutor’s office and the Court of Appeal. 

• Any type of fine imposed by the administration, except those of a municipal nature. 

• Interests charges due to not paying traffic fines, although it maintains their payment of sanctions. 

Consequently, taxpayers would be able to choose a new return method: a monthly fee with a maximum of payment of 9 months, according to the total amount. This election will be prosecuted with a 10% payment first month to settle the debt. If their payment is not done correctly, taxpayers will return to the previous way. 

Finally, this measure was also applied last year, and according to Diana González 36.000 people got benefited. This initiative has been developed to reduce tax burdens for various taxpayers, particularly those who are in debt.

An experimented and professional management of accounting, payroll and taxes in Auxadi can offer you good maintenance on your final balance in El Salvador and in more than 50 countries. Contact us.

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.