Machinery Imports Would Be Taxed

If the tax reform proposed by the Salvadoran government is enacted, machinery imports would pay 13% value added tax.

Monday, October 19, 2009

Additionally, expenditure reimbursements and tips would pay value added tax.

Economist Luis Membreño told newspaper "This, in addition to the elimination of the 'drawback' benefit, does not foster investment nor job generation. It is a new tax increasing companies' cost at a time when we need more industrial reconversion and investment".

More on this topic

Guatemala: VAT Exemption on Electricity Bill

July 2016

Companies operating under the Law for the Promotion of Export Activities and Maquilas will be able to deduct the VAT paid on electricity.

By presenting a certifying document to the Superintendency of Tax Administration (SAT) exporters will be exempted from paying VAT on their electricity bill, since it is a "...

Nicaragua: Tax Exemptions for SMEs

December 2014

Exemption from VAT and income tax for SMEs operating under the fixed quota regime will be retained in the Tax Act Coalition whose reform is being proposed by the Executive.

There are about 200,000 small and medium enterprises (SMEs) operating under the so-called fixed quota regime, contributing 40% to gross domestic product (GDP).

Nicaragua: Protests Over Self Transfer of VAT

March 2013

Employers indicate that for some companies, the inadequate implementation of an administrative ruling of the Department of Revenue increases costs by 15%.

"Where the provision of services in general and the use or enjoyment of goods is provided by natural or legal persons or an entity, either resident or nonresident, which are not responsible for collecting VAT (IVA in Spanish), the payer of the service shall make a self transfer of the VAT incurred, which constitutes a tax credit under accreditation rules. "

Nicaragua Removes VAT from Central American Products

January 2013

A Nicaraguan business leader announced that its government will maintain equal tax treatment for products imported from countries in the region.

The affected Central American employers expect the Nicaraguan government to sign the rectifying documents as soon as possible so that the Directorate General of Customs can stop collecting the tax from today.

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