A 60-day tax amnesty starting 16 October 2025 allows full or 9-installment payment of all tax and customs obligations expired up to 31 July 2025, with the first installment at 10% of the amount due.
Regfollower Desk
El Salvador’s Legislative Assembly has introduced Decree No. 427 of 25 October 2025, which establishes a Special and Transitory Law to provide a tax amnesty regime. This initiative, spearheaded by the President and the Minister of Finance, offers taxpayers an opportunity to settle outstanding tax, customs, and traffic-related obligations without facing interest, surcharges, or penalties.
The amnesty applies to obligations that expired up to 31 July 2025 and is available for a limited 60-day period starting 16 October 2025.
One of the key features of the regime is its flexibility in payment options. Taxpayers can choose to pay their outstanding obligations in full or opt for a payment plan of up to nine monthly installments, with an initial payment of at least 10% of the total amount due.
The law aims to assist individuals and businesses in regularising their financial standing, particularly those with unresolved legal or administrative issues. It covers a wide range of scenarios, including pending audits, appeals, and debts managed by the Treasury and the Attorney General’s office. Taxpayers under the General Directorates of Internal Taxes and Customs, and the Vice Ministry of Transport, are eligible to benefit from this program.
Earlier, on 13 October 2025, El Salvador’s Finance Commission gave a positive recommendation for a proposed tax amnesty programme. The proposed initiative will allow taxpayers to settle overdue tax and customs obligations due by 31 July 2025 without paying interest, penalties, or surcharges, with the option to pay in full or in up to nine monthly installments, starting with an initial payment of 10% of the total amount owed.
