11 August 2014 El Salvador amends its Tax Code By means of Legislative Decree issued on July 31, 2014 (the Decree), the Congress of El Salvador approved amendments to the Tax Code, which include changes to the transfer pricing and statute of limitations rules. The Decree first has to be signed by the Executive Branch before it gets published and becomes effective. An express reference to the OECD Transfer Pricing Guidelines is made in the Tax Code. As a result, taxpayers can now carry out their transfer pricing analysis in accordance with such guidelines. The tax authorities also may use the guidelines when determining market prices. The statute of limitations for the tax authorities to exercise their audit and assessment powers will be suspended from the time a taxpayer initiates an administrative or judicial proceeding until the disputed issue is settled by a final resolution or ruling. The period during which tax authorities may conduct audits and assessments will be suspended for up to three years beginning on the date of the auditor appointment notice. Electronic devices (e.g., point-of-sale terminals) will have to include a specific identification assigned by the tax authorities. Additionally, receipts issued by such electronic devices will have to include an authorized identification number given by the tax authorities. The tax authorities are authorized to publish in two national newspapers and on the Treasury's website abstracts of (i) tax assessments, (ii) judgments rendered by the Court of Appeals for Internal Taxes and Customs, (iii) judgments of the Administrative Court and (iv) cases notified or handed over to the General Prosecutor. The disclosure would include the taxpayer's name, the amount of the assessment and the name of the public officials signing the assessments or judgments.
Document ID: 2014-1436 | |||||||||||
