On 29 September 2023, El Salvador’s Ministry of Finance released a new General Guide on tax havens for the 2024 fiscal year. This guide lists jurisdictions and territories deemed as tax havens due to their low or zero-tax regimes.  

Payments originating from El Salvador and made to individuals or legal entities residing or situated in tax havens are subject to a heightened 25% withholding tax. Transactions with entities in these listed areas are subject to transfer pricing rules, whether related or not, and there may be restrictions on deductions.

There are 55 jurisdictions classified as tax havens in the low-tax category. The countries included in the list are Andorra, Ireland, Hong Kong, Iceland, Jamaica, Luxembourg, the Netherlands, Poland, Puerto Rico, Qatar, Saudi Arabia, Paraguay, Turkey, Singapore, Switzerland, Taiwan, and Vietnam.

There are a total of 43 jurisdictions classified as tax havens, including Aruba, Bahamas, Barbados, Belize, Bermuda, Curaçao, Cayman Islands, Isle of Man, US Virgin Islands, Monaco, 

The last time El Salvador released it’s designated list of tax havens for 2021 fiscal year was on 14 September 2020. The General Guide DG-02/2020 has the list of jurisdictions and territories that are considered tax havens for tax purposes for the 2021 fiscal year.