Double Tax on Financial Transactions

Market actors in El Salvador claim that transactions are being subjected to double retention, both by brokerage firms and the bank related to it.

Friday, September 19, 2014

Because of the speed with which the financial sector has been forced to comply with the withholding tax on financial transactions, effective from September 1st this year, the same market participants are claiming that investors are suffering because they are being billed the tax twice on each transaction.

The general manager of the Stock Exchange, Javier Mayora, noted that "... the haste with which the reform was implemented has not allowed banks to have the technical conditions needed to retain the tax -without major difficulties-, and therefore this has translated into daily complaints about fees being charged which has already been taken by the brokerage house. "

Elsalvador.com reports that "...As noted by the CEO of the Exchange, although as a brokerage house they are fulfilling their function of retaining the tax on transactions, they are not even clear about the date that the tax is transferred to the Treasury, 'there are no forms, no guidelines to follow, we do not know the mechanics'. "



More on this topic

Panama - El Salvador Stock Market Integration

October 2017

Four months after the operations of the two markets were integrated, five brokerage firms are already carrying out transactions and four other are waiting for their operating permit to be processed.

The attractiveness of the Panamanian stock market for both investors and companies raising money explains the great interest that the brokerage firms in El Salvador have shown in being part of the platform that allows them to operate remotely in the Panamanian market.

Guatemalan Stock Market Approaches International Market

October 2014

Amendments to securities regulations are being prepared in order to allow local stock brokers to buying shares of listed companies in developed markets.

This change in regulations and operational infrastructure will give access to the purchase of shares of international companies listed on stock markets such as New York.

El Salvador: Disincentive in Stock Investing

May 2014

A potential tax on financial transactions would discourage investment in the stock market as securities would be taxed each time they are traded.

In light of a tax proposal that would tax at 0.25% per $750 all kinds of securities, including repos and securitizations, the Stock Exchange of El Salvador (BVES) has expressed its concern for contracts already traded on the market and its dampening effect on investment.

Costa Rica: Backwards Step in Opening of Stock Market

April 2014

The proposal to create a market for direct trading of securities has been rejected by the authorities, yielding to pressure from industry participants themselves.

Although the World Bank itself proposed analyzing the creation of a market where investors could directly buy and sell securities, the government bowed to pressure from the National Stock Exchange and stock brokers, and chose not to include the proposal in the initiative for modernization of the Law Regulating the Securities Market.

 close (x)

Receive more news about Finance

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Dec 6)
Brent Crude Oil
70.990
Coffee "C"
242.5
Gold
1,786
Silver
22.555