On Friday, December 13th, 2019, the Salvadorian Congress approved a Special and Transitional "Law to facilitate the voluntary compliance of tax and customs obligations". Taxpayers have 8 months to pay to the Salvadorian Tax Authority all overdue original and supplementary taxes corresponding to the 2018 fiscal year or reimburse amounts credited by the Tax Authority to such taxpayers in the 2018 fiscal in excess of what such taxpayer was legally entitled.

Penalties, charges or fines may be waived to taxpayers who:

  1. Have filed their tax returns and have not paid the respective tax.
  2. Have not filed tax returns but are not subject to the payment of such taxes.
  3. Have not filed tax returns and have not paid the respective tax.
  4. Have filed tax returns, reflecting zero values and have not paid the respective tax.
  5. Have filed tax returns, reflecting balances in favor, in an amount greater than legally applicable.
  6. Have filed tax returns or amendments thereto and have paid less what they were required.
  7. Are subject to a fiscal audit.
  8. Are in the process of presentation of evidence before the Tax Administration.
  9. After the process of presentation of evidence before the Tax Authority, are in taxes and penalties setting process and no notification has been received.
  10. Are within the time limit for challenging the decisions for the appraisal of taxes and/or fines and have not brought the respective action.
  11. Have filed administrative appeals, administrative litigation or Constitutional Protection and these are in process.
  12. Have firm and liquid obligations, regardless of the enforceability.
  13. Have a resolution requiring them to pay the taxes in installment.
  14. Have not withheld or received amounts as a tax, as well as advances, in breach of a legal obligation.
  15. Have withheld or received taxes, as well as advances and have not delivered them to the Tax Authority.
  16. Have partially delivered withheld or received taxes, as well as advances.
  17. Have not filed a customs declaration or have filed it with omissions or inaccuracies and have not paid or settled the import duties or other taxes, or have paid or settled a lower sum than the legally applicable.
  18. Have filed a customs declaration and have not paid or settled the import duties or other taxes, under non-existent, improper profits or exemptions.
  19. Have filed a customs declaration with incorrect tariff of the import duties or other taxes and have paid or settled a lower sum than was legally applicable.
  20. Are in immediate verification or auditing processes, or in the administrative sanctioning procedure established in article 17 of the Customs Simplification Act.

In addition, the following taxpayers may benefit from this Special Law if their tax obligations are firm, liquid and enforceable obligations and if:

  1. Tax debts have been sent by the Direcciones Generales de Impuestos Internos y Aduanas (Internal Revenue Office and Customs Revenue Office) to the Dirección General de Tesorería (Treasury Office) to initiate the collection process.
  2. Tax debts have been certified and sent to the Attorney General's Office, and no final judgement has been issued, and notified, formally or materially, by the corresponding judgement, even if the formal process has been initiated.

The Legislative Decree by which the Law was approved must be sanctioned by the President of the Republic. The Law will take effect 8 days after the publication in the Official Journal.

The President of the Republic has the power to comment or veto the decree, in which case the bill would return it to the Legislative Assembly.