By: Victor Vindel
As of February 1st, of this year, the Special Transitory Law Granting Facilities for the Voluntary Substantive and Formal Obligations Compliance in the Matter of Municipal Taxes came into force, the purpose is to establish an exceptional and temporary incentive and granting facilities to taxpayers of all the El Salvador municipalities, for the voluntary compliance of their obligations, making available to them dispensation in the payment of fines and interest on late payment.
Such regulation includes the following:
- Fines and moratory interests generated by the non-payment of the respective municipal tax declared and unpaid.
- Fines and moratory interest generated by the failure of municipal taxes payment, at the time of filing the respective municipal tax return.
- Fines generated by failure to comply with the formal obligations established in Art. 90 of the General Municipal Tax Law.
The temporary scope of the Special Law will be from its entry into force in the cases until December 31, 2021, and taxpayers must go to the attention points enabled by each of the municipalities, having access, in turn, to make payments by bank transfer according to the procedure authorized by each municipality and which will be reflected in the validity of the Law.
For all those taxpayers who have expressed their willingness to take advantage of the tax exemption, they will be able to formalize payment plans to cancel the total amount owed, if they pay a premium of 30% of the amount owed, and the Law is in force for 90 days.
For further information, please contact LatinAlliance El Salvador, Abogados, at the following e-mail addresses: msutter@latinalliance.co and/or mcosta@latinalliance.co.