The Legislative Assembly of El Salvador has introduced significant reforms to its International Services Law. These changes have the potential to transform the business landscape in the country and have sparked considerable interest both domestically and internationally.

The expansion of subsectors under the International Services Law is one of the most prominent features of these reforms. The inclusion of areas such as software development, databases, video games, and cloud storage-related services opens new perspectives for businesses operating under this regime.

According to Adalicia Torres, associate lawyer and head of the Regulatory and Tax Department of our firm, these reforms “could drive the diversity of services that companies can offer and enable them to access growing technological markets, which is crucial in today’s digital age.”

One of the most notable reforms is the inclusion of telecommuting as a permanent option. This could influence how companies organize their operations, reducing costs associated with physical infrastructure and attracting talent from regions outside the capital.

However, this measure could also alter the work dynamics and the relationship between employees and companies, as pointed out by Torres: “While telecommuting can offer significant benefits in terms of flexibility and cost reduction, companies must be prepared to address challenges related to managing and engaging remote employees.”

Moreover, the inclusion of support processes for advertising, brand management, and marketing is another significant aspect of these reforms. This provides companies with additional tools and resources to promote their services and enhance their competitiveness in the market. Torres notes that “this focus on supporting the business sector could be pivotal for companies to fully leverage the opportunities provided by the International Services Law.”

A crucial aspect of the reforms is the focus on ensuring the social and labor conditions of employees affected by decisions of companies deciding to leave the country. According to Torres, this measure could have a positive impact on employees’ perception regarding job security and ultimately contribute to talent retention and labor stability.

“It’s essential for companies to fully understand these reforms and work closely with legal and tax advisors to maximize opportunities and comply with new responsibilities,” concludes Adalicia.