El Salvador: Credit Cards and Construction excluded from Tax Reform

Excluded from financial transactions which would incur tax under the fiscal reform are transactions made with credit cards and amendments will be made to the property tax which affects the construction sector.

Thursday, July 17, 2014

Meeting the demands of the construction industry is one of the modifications being contemplated in the reform of the text is to adjust the amounts of the 'floor' on property taxes, "... relative to luxury properties."

Although some of the proposed changes have not yet been fully adopted, such as the case of adjustments to the amounts of property tax, the Technical Secretary of the Presidency, Roberto Lorenzana, told Elsalvador.com that "... there are three agreements to redraft the proposed tax reform. "

"...Members of the Legislative Assembly will continue the discussion of this tax reform, which has led to criticism from some quarters due to the impact it could generate on the national economy. "

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The new draft law on tax fraud prepared by the opposition and which must be reviewed by the Ministry of Finance excludes the concept of collection and seizure by administrative authorities.

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From the order by the Ministry of Finance published in La Gaceta:

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