The Legislative Assembly of El Salvador approves Tax Amnesty programme

EY Law - The Legislative Assembly of El Salvador approved a tax amnesty programme, which aims to enable taxpayers to voluntarily comply with any outstanding obligations related to taxes administered by the General Directorate of Internal Revenue, the General Directorate of Customs, or before the Court of Appeal for Internal Revenue and Customs; before the Contentious-Administrative Jurisdiction or in Constitutional Amparo proceedings; in addition to those being processed before the Attorney General’s Office and those citizens who owe fines related to the Land Transport, Traffic and Road Safety Law or who have fines from any Public Administration institution, excluding municipal tax obligations.

The obligations and pending proceedings applicable to the tax amnesty programme must have had a due date of 31 July 2025 or earlier.

The Directorate General of Treasury shall grant a payment plan of up to a maximum of nine monthly instalments, taking into account the amount owed, by issuing a Resolution for Payment in Instalments. The first instalment, amounting to ten per cent (10%) of the debt, shall be paid on the day the aforementioned resolution is issued and notified. The remaining eight instalments must be paid monthly and consecutively.

Additionally, the programme establishes that taxpayers who have taken advantage of any previous amnesty programme and who, due to different circumstances, have not paid their debt within the period established in said programme, may enjoy the benefits established in the tax amnesty programme, with the exception of the exemption from fines when these are liquid, final and enforceable, which may only be paid in instalments.

The fines that may be covered by the exemption benefit established in the amnesty programme are those set forth in Articles 238(a) to (d), 246, 247, 252, 253 and 254, all of the Tax Code. Fines not covered by the aforementioned articles will only be eligible for the benefit of a payment plan of up to nine months, with a first instalment of twenty per cent (20%) of the fine payable on the day the resolution is issued and notified.

It is important to mention that in order to qualify for the benefits of the tax amnesty in cases that are before judicial or administrative authorities, taxpayers must file a partial or total withdrawal or waiver of the proceedings before the corresponding court or authority.

Author: Antonio Ruiz

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