On June 25, the Ministry of Finance published in La Gaceta the new income tax brackets to be applied to salaries between July 1 and September 30, 2019.

The publication details that the tranches will remain like this:

"a) Income up to ¢ 817,000.00 ($1,394) per month will not be subject to tax.

b) On the excess of ¢ 817,000.00 ($1,394) per month and up to ¢1,199,000.00 ($1,394) per month, ten percent (10%) shall be paid.

c) On the excess of ¢1,199,000.00 ($1,394) monthly and up to ¢2,103,000.00 ($3,589) monthly, fifteen percent (15%) shall be paid.

d) On the excess of ¢2,103,000.00 ($3,589) per month, and up to ¢4,205,000.00 ($7,176) per month, twenty percent (20%) shall be paid.

e) On the excess of ¢4.205.000,00 ($7.176) per month, twenty-five percent (25%) shall be paid."

After the period for which these modifications were fixed expires, a new table will be published that will apply for the next 15 months beginning October 1 of this year.

See full publication in scope number 143 of La Gaceta.

More on this topic

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October 2012

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Guatemala Puts Finishing Touches on Tax Reform

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Among other measures, the bill proposed by the government examines establishing regimes for income tax and eliminating accreditation for VAT returns, a method that has encouraged evasion.

The new Guatemalan government has refined its proposed fiscal law reform, which includes proposals such as removing the accreditation of the VAT tax and setting different levels for the deduction of income tax.

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January 2012

From 1st January reforms to the current income tax have come into force, affecting declarations filed in 2013, which correspond to 2012 revenues.

Reporters Daniel Trujillo and Velasco Sury writing for the newspaper El Mundo, explain the main changes introduced by the reform.

Tax Reform in El Salvador Approved

December 2011

The tax on corporate income will rise from 25% to 30%, while tax on dividends will be reduced.

The legislative body of El Salvador has approved the fiscal reforms promoted by the Executive, with 66 votes in favor and 17 against.

The major changes include increasing income tax for businesses, which will raise to 30%, except for companies with revenue of less than $150,000, who will continue to pay 25%.