Currently, this tax can be paid in three payments, but with the new regulation, it must be done in one lump sum.
"The alternative fee would be 1% over the taxable base (the value of the land plus built improvements)", reports Prensa.com. "With these modifications, the owner of a $55.000 house paying a preferential fee of $185 a year would have to disburse $250".
The economy and finance ministry will present some tax adjustments, prior to the fiscal reform announced for years-end.
These adjustments include a modification in real estate taxes and tax increases for casinos and gambling houses.
"...this adjustment 'package' includes the withdrawal of the ITBMS exoneration for banking services commissions, a tax hike for tobacco companies...", reported an official government source to newspaper La Prensa.
Business unions disagree with the Government’s proposal and propose various changes.
They proposed modifications in how taxes are calculated and in the various tax rates.
“Some argue that the bill discriminates some sectors. For some companies, income tax would drop to 25% from 27%, while others would pay 27%, down from 30%. For a number of industries, income tax would remain at 30%, the maximum”, reported Prensa.com.
Private business leaders spoke out against the creation of new taxes and increasing income tax.
"The private sector struggles between uncertainty and anger, after a study by Eurasia ensures that the Salvadoran Government is expected to approve an increase to the ceiling of income tax, a new estate tribute and a security levy," Laprensagrafica.com reports.
Receive more news about Real Estate
Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.
Sustainable 70 Acre Coffee Farm, San Ramon, Costa Rica Coffee Estate, development property with 20 titled lots, ready to develop with roads, water and power. Great Location, close to everything. Ideal area for living or developing an ecologically...