From a press release issued by the Legislative Assembly of El Salvador:

With 82 votes from all of the parliamentary groups, the Legislature approved tonight reforms to the Law on Industrial Free Zones, which according to the ruling, will generate greater certainty and legal security for the productive sector.

The reforms consist of a set of items that were agreed with the various sectors, including representatives from industry, labor and the Chamber of Textile Companies (CAMTEX).

Article 11 of the ruling introduces total exemption from income tax for a period of fifteen years for companies starting up operations outside of the metropolitan area.

Congresswoman Lorena Pena congratulated the Special Committee on Budget and Finance over which she presides for the unanimous approval of the reforms, and also welcomed the participation in them of labor representation, and from unions, businesses and CAMTEX, which allowed them to address the WTO challenges, and improve respect for labor rights, such as tax incentives for the business sector.

"We are pleased that after lengthy negotiations among stakeholders, the Government of El Salvador and the Legislative Assembly, has reached a consensus to pass this law," said Rep. Edwin Zamora, specifying that this will bring open up an opportunity for the country, to meet WTO commitments, as well as adding stability for investors who have generated hundreds of thousands of jobs in the country.

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Legislature Approves Power Generation Concessions

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Under the new law, concessions for small-scale electricity generation projects must be approved by the Legislative Assembly of El Salvador.

The legislature approved on August 21 the Regulatory Act for granting concessions for electricity generation projects on a small scale (less than 5MW), which limits the maximum concession period to 50 years and requires that energy projects be approved by the Assembly.

Construction of New Legislative Building Announced

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The president of the Salvadoran Assembly has presented an outline for the the new Legislative Assembly building project.

The project will be financed by the Inter-American Development Bank (IDB) with $5 million, over a 25 year term.

The new 8 floor building will have a meeting and conference room and larger installations than those at the current site, among other things.

El Salvador: New Law on Free Zones Delayed

August 2011

There is a growing demand for textiles and clothes manufacturing, but a new Law on Free Zones is needed in order to bring fresh investments to this sector.

The World Trade Organization (WTO) has determined, after two extensions, the country should, in 2015, replace the law that has been in force since 1998, which grants tax benefits such as a total and permanent exemption from taxes, among others.

El Salvador: $3.654 Million in 2010 Budget

November 2009

The Legislative Assembly passed the General Budget for 2010: $3.645 million.

This edition is marginally higher than the budget for 2009, which stood at $3.627 million.

"The opposition party warned that social expenditure was reduced by $17 million, and that the Executive plans a Tax reform to collect $250 million", reported EFE.