El Salvador has a special temporary law that allows taxpayers to pay taxes and municipal fees without interest or penalties in the 262 municipalities of El Salvador.

However, many people are unaware of who can participate in this new regime and what steps to follow. To address this, our associate lawyer, Adalicia Torres, shared some advice and steps in the morning segment “5 minutos legales” on Radio Femenina.

Our specialist in regulatory and tax matters explains that “amnesty means forgiveness” and an opportunity to catch up on tax payments, providing a waiver for individuals and legal entities.

“If there are people who have owed money to the municipality for years but have been unable to pay due to fines and interest, this amnesty forgives those fines and interest that have accumulated,” Torres commented.

To apply for the benefits, Torres stated that the first step is to consult a legal advisor to determine if one is eligible for the municipal tax amnesty.

“There are fines that can be appealed, and there are others that can be submitted for the fiscal amnesty and start 2023 in the best possible way without tax problems with the municipality.”

Next, to benefit from the measure, Torres explained that individuals should approach the service points set up by the municipalities or make payments through bank transfers once they are received in the bank account during the validity of the law.

Our expert indicated that the beneficiaries are all citizens who did not appeal the decision, whose process is not final, or whose debts were not in judicial collection before 2021.

“If there is a fine or interest that has not been paid in the municipality, for example, in the years 2018, 2019, or 2020, you can come forward, and this will allow you to carry out many procedures that you cannot perform due to fines,” added our head of the Regulatory and AML Department.

Torres mentioned some problems that people face when they do not pay their taxes and incur fines and interest. For example, the taxpayer cannot make modifications to their home or establishment because they require a municipal solvency, cannot start a business or renew the company’s registration.

You can contact us through our social media channels or visit our offices located at Calle Cuscatlán, #4312, Colonia Escalón, San Salvador.