Incorrect balances in the accounts of taxpayers are preventing the system from providing the "Paz y Salvo" (Safe and sound) certificate required for transactions with state institutions.
Companies claim that the appearance of false outstanding debts in their accounts has prevented them from receiving "...the "Paz y Salvo" document, needed to formalize the sale of land or businesses, collect payment when a company is a state supplier or participate in public tenders. "
It has been announced that starting May companies will be obliged to declare their income for tax and VAT purposes in digital form.
Long lines to file tax returns presented by hand will go down in history, as from May all tax procedures currently carried out in the Ministry of Finance in person will be undertaken online, obligatorily. The website to be used is www.mh.gob.sv.
The new system proposed by the government will include all professionals who create invoices and not only those who work freelance, as had been mentioned in the current project so far.
The pilot project implemented by the Directorate General of Taxation in 2013 will cease to be effective as of now, as will the software and systems that were purchased for its deployment last year. The Ministry of Finance has decided to discard the work done by the previous administration and start a new project for mandatory electronic signatures from scratch.
With the aim of encouraging tax-payers to comply with their obligations in a timely manner, an Internet based tax payment system has been introduced.
Payment, sending in tax forms or submitting queries are some of the new services that Honduras' tax authority (DEI in Spanish) have made available online to make it easier for tax-payers to carry out these tasks. In order to check the system's functionality, the DEI has initiated the process of declaring and charging taxes on income for 2010, with which it hopes to collect more than $370 million.
Chicas Vilchez & Ruiz is a professional finance and accounting firm providing Auditing, Consulting, Outsourcing, and Tax services in El Salvador, Central America and the United States.
Operates in El Salvador, Costa Rica, Guatemala, Panama, Honduras and Nicaragua
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