On Thursday, June 2nd, 2017, El Salvador's Legislative Assembly approved the TRANSITORY ACT TO REGULARIZE THE TAX SITUATION OF TAXPAYERS AND FACILITATE THE PAYMENT OF TAX OBLIGATIONS IN FAVOR OF THE STATE, through which a tax amnesty is granted during the term of 90 days from the date of entry into force of this decree, which exempts from payment of interest and fines.

The aforementioned tax amnesty is applicable to unpaid tax obligations regarding to different internal taxes administered by the General Directorate of Internal Taxes, as well as to import duties and taxes administered by the General Directorate of Customs.

Payment can be made instantly and must be made during the validity of the abovementioned decree, except for amounts exceeding US$500,000.00, for which an additional term of twelve months may be authorized from the date on which the taxpayer seeks protection under the decree and in cases of dation in payment represented in real estate up to one hundred and eighty days.

The amnesty decree considers a number of cases that may qualify for amnesty, which includes cases of taxpayers who have not submitted tax returns, those who declared but did not declare all the facts of the generating activities, as well as those that are in auditing and opening to evidence or in appeals before administrative or jurisdictional instances.