Finance Commission approved a plan allowing taxpayers to clear overdue tax and customs debts without interest or penalties.
El Salvador’s Legislative Assembly reported that on 13 October 2025, the Finance Commission gave a positive recommendation for a proposed tax amnesty programme.
If approved, the proposed initiative will allow taxpayers to settle overdue tax and customs obligations due up to 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, and the amnesty will be open for 60 days from its entry into force.
To this end, the Ministry of Finance requested the continuation of the Special and Temporary Law that Grants Facilities for the Voluntary Compliance of Tax, Customs, Traffic, and Other Fines, which was first approved in 2023.
At that time, the legislators approved a similar decree, which was adopted by more than 36,000 Salvadorans, allowing the Ministry of Finance to collect over USD 100 million in tax revenue, 57% of which came from small taxpayers who chose to participate in the process.
In 2024, the ministry recorded that 59,493 taxpayers benefited, resulting in a revenue collection of USD 105.6 million.
To provide more information, the parliamentarians met with the Director General of Internal Taxes, Marvin Sorto, and the head of the Debt Management Department, Julio Alemán.
“These initiatives have resulted in savings for the Salvadoran population amounting to USD 47.4 million. Therefore, we consider this money as injected into the country’s economy because it has been able to be invested in working capital,” Sorto commented.
Regarding income tax returns, all declarations submitted up to 31 July of this year will be included.
For those with traffic-related fines, the beneficiaries will be those who do not already have a prior payment arrangement before this temporary law.
“There is no waiver of the fine itself, but there is a waiver of the interest generated by these fines,” clarified the Director of Taxes.
Small taxpayers are the main beneficiaries
According to the records held by the Ministry of Finance, the main beneficiaries of this amnesty were small taxpayers. They made up 63% of those who benefited from this temporary law approved in 2024, which generated total revenue of USD 66.6 million.
Of the remaining figures, only 23% corresponded to large taxpayers, equivalent to USD 23.8 million in revenue, while 14% were medium taxpayers.
Institutions that will grant the amnesty
According to the legislative working session, the waiver will apply to cases pending resolution at the General Directorate of Internal Taxes, the General Directorate of Customs, or before the Tax and Customs Appeals Tribunal; before the Administrative Litigation Jurisdiction; or in Constitutional Protection (Amparo) processes.
Additionally, it will apply to cases under review by the Office of the Attorney General (FGR) and to citizens who owe fines related to the Land Transport, Traffic, and Road Safety Law, or fines imposed by any public administration institution, excluding municipalities.
