Constitutional Complaint Against Tax Reform

Salvadoran businessmen, through ANEP, will submit an appeal to the Constitutional Court against the tax reform in force since January 2012.

Tuesday, December 11, 2012

"The measure seeks to challenge the legality of two executive changes implemented: a 5% tax on profits of companies operating in the free zone regime and the law of international services (in the form of income tax) and the application of a 1% minimum tax on the total sales of companies that report losses for two consecutive years", noted an article in Laprensagrafica.com.

Regard Waldo Jimenez, director of economic affairs at the National Association of Private Enterprise (ANEP), said, "we are analyzing both ‘amparo’ actions (appeal for legal protection) as well as measures of unconstitutionality, for both types of taxes."

The decision of the Supreme Court on an ‘amparo’ action affects only the person who filed it, while in an action of unconstitutionality, the decision applies to all who are under the influence of said law.



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