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

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.

More on this topic

El Salvador: Appeal Against Reform to Trust Law

October 2016

The union of private companies has filed suit citing unconstitutionality against the law authorizing the state to use the savings of contributors to pay debts.

The National Association of Private Enterprise (ANEP) filed with the Supreme Court (CSJ) a claim of unconstitutionality against the law recently approved by the Assembly.

ISR in El Salvador: Minimum Tax of 1% is Illegal

November 2013

The Supreme Court has ruled that the collection of a 1% tax over revenue as minimum payment for income tax is unconstitutional.

The ruling came months after the submission of a claim of unconstitutionality "through a legal team set up by the National Association of Private Enterprise (ANEP), along with union representatives and other affected MSMEs," reported .

El Salvador: ANEP Presents Complaint of Unconstitutionality

August 2012

The National Association of Private Enterprise has resorted to the Supreme Court for the direct election of business representatives in autonomous institutions by the Executive.

The lawsuit is based legally on the reforms being approved with waiver process, which is classified as illegal.

Resistance to New Supreme Court of Justice

July 2012

The National Association of Private Enterprise of El Salvador has announced the formation of a team of constitutional lawyers to appeal against any decision issued by a court which they consider illegally appointed.

Already in a press release issued on July 1 the National Association of Private Enterprise (ANEP) noted that: