Tax Amnesty
Tax Amnesty
Published on november 16 , 2023
Alan Stanley Santos Beltrán - Associate
On November 1st of this year Legislative Decree number 875 was published, which contains the new normative body called ,SPECIAL AND TRANSITORY LAW THAT GRANTS FACILITIES FOR THE VOLUNTARY COMPLIANCE OF TAX AND CUSTOMS OBLIGATIONS, composed by 13 articles and that regulates the extemporaneous compliance of the payment of such obligations.
All taxpayers have the obligation to cancel all their Tax and Customs obligations, as required by the current laws of the Republic of El Salvador; however, not all taxpayers have the economic capacity to make such payments when due, due to various circumstances that have arisen, such as the world inflationary crisis or cash flow deficiencies, among others. As a consequence of this, they fall behind in their tax payments, which may affect them in the long term, in addition to the consequences, even criminal, that this may entail.
In view of the above and with the purpose of providing opportunities to all taxpayers to settle different debts they have with the Treasury and to cancel the payments that are pending, this tax amnesty has been issued, even allowing tax debts to be amortized in installments. It should be mentioned that this situation also benefits the Treasury to the extent that it allows it to increase tax collection.
In the content of said special law, it is mentioned that any taxpayer may avail itself of the benefits established therein, for which it divides them as follows: a) Taxpayers obliged to pay taxes under the jurisdiction of the General Directorate of Internal Taxes; b) Taxpayers obliged to pay taxes under the jurisdiction of the General Directorate of Customs; and, c) Taxpayers obliged to pay taxes whose debts are liquid, firm and enforceable.
On the other hand, said Legislative Decree provides a specific term for all taxpayers to avail themselves of the corresponding benefits; this term begins as from the effective date of the Decree, until December 8 of the current year, during which payment shall be made by any of the following means: any legal tender, cashier's, manager's or certified checks, Public Treasury Credit Notes, credit or debit cards accepted by the General Treasury Directorate and presenting the corresponding tax returns or merchandise declarations, in the situations where it is appropriate to do so. The General Treasury Directorate will grant a term for the taxpayers to make the amortizations of the debts taking into consideration the amount owed. In case of non-compliance with the payment in installments, after the term granted, the benefits conferred therein will be lost.
The purpose of this amnesty is to facilitate taxpayers to voluntarily cancel all outstanding Tax and Customs obligations. For this reason, it offers different means of payment and terms with the purpose of complying with these obligations before the Treasury, also exonerating fines, interests and surcharges with the result that they are solvent before any institution.
All taxpayers have the obligation to cancel all their Tax and Customs obligations, as required by the current laws of the Republic of El Salvador; however, not all taxpayers have the economic capacity to make such payments when due, due to various circumstances that have arisen, such as the world inflationary crisis or cash flow deficiencies, among others. As a consequence of this, they fall behind in their tax payments, which may affect them in the long term, in addition to the consequences, even criminal, that this may entail.
In view of the above and with the purpose of providing opportunities to all taxpayers to settle different debts they have with the Treasury and to cancel the payments that are pending, this tax amnesty has been issued, even allowing tax debts to be amortized in installments. It should be mentioned that this situation also benefits the Treasury to the extent that it allows it to increase tax collection.
In the content of said special law, it is mentioned that any taxpayer may avail itself of the benefits established therein, for which it divides them as follows: a) Taxpayers obliged to pay taxes under the jurisdiction of the General Directorate of Internal Taxes; b) Taxpayers obliged to pay taxes under the jurisdiction of the General Directorate of Customs; and, c) Taxpayers obliged to pay taxes whose debts are liquid, firm and enforceable.
On the other hand, said Legislative Decree provides a specific term for all taxpayers to avail themselves of the corresponding benefits; this term begins as from the effective date of the Decree, until December 8 of the current year, during which payment shall be made by any of the following means: any legal tender, cashier's, manager's or certified checks, Public Treasury Credit Notes, credit or debit cards accepted by the General Treasury Directorate and presenting the corresponding tax returns or merchandise declarations, in the situations where it is appropriate to do so. The General Treasury Directorate will grant a term for the taxpayers to make the amortizations of the debts taking into consideration the amount owed. In case of non-compliance with the payment in installments, after the term granted, the benefits conferred therein will be lost.
The purpose of this amnesty is to facilitate taxpayers to voluntarily cancel all outstanding Tax and Customs obligations. For this reason, it offers different means of payment and terms with the purpose of complying with these obligations before the Treasury, also exonerating fines, interests and surcharges with the result that they are solvent before any institution.