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January 10, 2020
2020-0061

El Salvador approves tax amnesty program

Taxpayers should review the terms of the amnesty program to determine if they might benefit from it.

The Salvadoran Congress approved (Legislative Decree No. 521) an eight-month tax amnesty program on December 13, 2019, to allow taxpayers to comply voluntarily with their tax and customs obligations. The amnesty period will begin on the date the Decree is published in the Official Gazette, which is scheduled for January 2020.

This amnesty program applies to all taxpayers that should have declared or paid taxes or customs duties before the amnesty program entered into force.

Taxpayers paying the original or additional taxes due during the amnesty period will not have to pay interest, surcharges or additional fines. Taxpayers may request a grace period of up to seven months to pay the original or additional taxes due.

Taxpayers that benefited from previous amnesty programs, and have not paid their obligations for various reasons, may apply for the current program and make the payment within the amnesty period. In this case, taxpayers may request a grace period of up to six months to pay the pending obligations.

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Contact Information
For additional information concerning this Alert, please contact:
 
Ernst & Young El Salvador
   • Rafael Sayagués (rafael.sayagues@ey.com)
   • Héctor Mancía (hector.mancia@cr.ey.com)
   • Carlos Gaitán (carlos.gaitan@sv.ey.com )
Latin American Business Center, New York
   • Ana Mingramm (ana.mingramm@ey.com)
   • Enrique Perez Grovas (enrique.perezgrovas@ey.com)
   • Pablo Wejcman (pablo.wejcman@ey.com)
 

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