The Ministry of Finance of El Salvador has introduced a new tax amnesty regime allowing taxpayers to settle their outstanding tax and customs obligations up to 30 September 2023. The El Salvador tax authorities will waive all incurring interest, surcharges, and fines.
The tax amnesty covers all expired tax and customs obligations until 30 September 2023. This includes annual obligations up to the 2022 tax year and monthly obligations up to August 2023.
Taxpayers can pay their outstanding tax obligations in full or spread it over a maximum of 9 monthly instalments. The initial instalment should be equivalent to 10% of the due amount. To take advantage of the tax amnesty, taxpayers must submit their application by 8 December 2023.
Earlier, the Legislative Assembly of El Salvador approved the tax amnesty program on 24 August 2022 allowing taxpayers to pay their undeclared or underreported taxes and declare their income without incurring any fees, penalties, and interest.
