El Salvador: Industrialists Ask for Fiscal Breaks

Faced with the health crisis affecting the Salvadoran economy, businessmen from the industrial sector asked the government to postpone income tax declarations until June 2020.

Monday, April 13, 2020

Another of the specific requests of the Salvadoran Association of Industrialists (ASI), is the prompt refund to exporters of Value Added Tax, through Treasury Notes.

You may be interested in "Machinery Repair: Regional Outlook"

ASI's statement published on its social networks on April 8, which proposes 4 tax relief measures, reviews:

"... 1. Income tax return, that its payment be postponed until June 2020 and that 6 months be given without interest to pay it.

2. Suspension of the advance payment of income tax, known as payment on account, during the next 4 months, given that it will always be settled in the 2020 Income Tax Return to be made in 2021.

3. Capital gains tax of 5% for the Special Contribution to Security. That the 5% tax on capital gains over $500,000 be deferred until June 2020 and that 6 months be given without interest to pay it.

4. Return of VAT to the Exporter. That this be done in cash or through Treasury Notes and that the Treasury catches up with the exporting companies.
"

Covid-19: How do the outlook change for companies in the industrial sector in El Salvador given the new commercial reality?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.



More on this topic

Businessmen Take Action Against SAT

April 2020

Guatemala's private sector filed a legal action against the Superintendence of Tax Administration, arguing that the entity had indicated that it would defer tax collection if the restrictions remained in place, but did not do so.

Because of the outbreak of Covid-19 in the country, which as of April 15 counted 196 cases, for the time being the government has decided to maintain until April 19 the measures restricting freedom of movement, which includes the transit and movement of persons, crew, passengers and vehicles, in addition to the closure of most commercial establishments.

Taxes: Moratorium for Tourism Companies

April 2020

Companies that owe taxes to the Costa Rica Tourism Institute will be granted a moratorium during April, May, June and July.

Regarding the taxes to which the moratorium will apply, the Costa Rican Tourism Institute (ICT) reported they are 5% for the sale of each air ticket originating in Costa Rica for international travel, in addition to the 5% that applies to the purchase of tickets whose destination is our country.

Taxes: Moratorium Proposed in Costa Rica

March 2020

A three-month moratorium on the payment of value added taxes, business income and customs duties is the proposal of the Executive in view of the emergency caused by the spread of covid-19 in the country.

The initiative "COVID-19 Tax Relief Project", which was presented to the Legislative Assembly on March 16, proposes that taxpayers can postpone the payment of taxes for at least three months.

Government Spends and Does Not Return VAT Retentions to Exporters

February 2013

Government Finance Officers in Guatemala acknowledged that instead of returning the credit to exporters, the money was being used for miscellaneous budget payments.

An article in Elperiodico.com.gt reports that "the need to finance public spending in the last months of 2012, led the Ministry of Public Finance (Minfin) to take the "political decision" to use the $50 million (Q392 million) from the Coffee Support Trust and nearly $13 million (Q100 million) from the account for repayment of the tax credit to exporters, even though these resources have specific destinations established in Decree 31-2001 and Section 25 of the Value Added Tax (IVA by its initials in Spanish) Act. '

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