By: Flor Sánchez
On November 30, 2022, the Legislative Assembly of El Salvador approved a transitory decree for the exemption of income tax on Christmas Bonuses for the current fiscal year 2022. Therefore, the income received by workers as Christmas bonuses will be considered as non-taxable income up to a limit of $1,500.
Those Christmas Bonuses that exceed the amount will be subject to withholding and payment of the corresponding income tax, deducting the non-taxable value already mentioned.
This decree will enter into force once it has been published in the Official Gazette.