El Salvador: New Tax on Businesses

Companies with net annual earnings above $500,000 must pay the equivalent of 5% of them to finance public security fund.

Friday, October 30, 2015

From a statement issued by the Legislative Assembly of El Salvador:

The Legislature approved the "Law of Large Taxpayers Special Contribution to the Public Security Plan", with which measures will be implemented related to governance, prevention of crime and preservation of public order (October 29).

This contribution will be incurred only by taxpayers who earn net profits equal to or greater than $500,000, and for the calculation of the tax a rate of 5% will be applied on the total.

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