The Tax Amnesty in El Salvador or tax pardon is a time-limited opportunity for taxpayers to pay a determined amount to the Treasury portfolio, in exchange for the absolution of interests.

Our junior associate attorney, Adalicia Torres, explained in the morning program “5 minutos legales” of Radio Femenina, that the Tax Amnesty in El Salvador is an opportunity that the Ministry of Finance offers, for a limited time, to “catch up with the payment of your taxes” without surcharges, arrears or other additional amount.

The Tax Amnesty approved in August by the Legislative Assembly waives surcharges, interest and fines on internal or customs tax debts. However, there are two and a half weeks left for the amnesty to expire; that is, taxpayers have until November 1, 2022 to enjoy its benefits.

“The new Tax Amnesty, by Legislative Decree 478, allows you to pay your taxes and the beneficiaries are the taxpayers who are the taxpayers, natural persons, legal entities or any other obligated entity”, our specialist explained.

Our expert clarified that the Special and Transitory Law that grants Facilities for the Voluntary Compliance of Tax and Customs Obligations, applies to those taxes corresponding to periods or fiscal years whose term to liquidate or declare expired on August 18, 2022.

Torres also reminded the audience that there are several ways to pay, either by means of all legal tender currencies in El Salvador, cashier’s, management or certified checks, Public Treasury Credit Notes, credit or debit cards.

“I recommend, because there are only a few days left, to approach the Ministry of Finance or consult us which are the available means of payment and the method of payment by installments”, he indicated.

For further information and advice on Tax Law and Financial Law, you can contact the Corporate Department of Torres Legal to learn about other duties of taxpayers, other situations or procedural stages of the Tax Amnesty 2022.

READ MORE: Importance of a Business Plan.