Reactions To Tax on Transfers

It would affect the banking sector in El Salvador, lowering the volume of transactions in the financial system, and increasing the price of money.

Friday, November 9, 2012

The Salvadoran Banking Association (Abansa) is studying a proposal by the Ministry of Finance to tax the issuance of checks and electronic transactions, but its representative Marcela de Jimenez has already indicated her criticism, noting that it has not been ruled out "that this tax will affect the banking system, ie, there will be a decrease in the level of resources that are traded through the financial system and therefore an increase in the price of money. "

Elmundo.com.sv reports that "This tax, which according to the Executive is still being analyzed, is known to be a tax of 0.25% on the amount of the issuance of checks and electronic transactions worth $3,000 and overz

On this regard Marcela de Jimenez explained: "It would be a tax on checks and transfers, at a rate of $0.25 per $100."



More on this topic

Guatemala: Fewer Checks, More Electronic Banking

July 2017

Between 2015 and 2016 issuance of checks in the country fell by 5%, while the use of electronic banking continues to grow.

The former president of the Banking Association of Guatemala (ABG), Luis Lara Grojec, explained to S21.gt that "... electronic banking will continue to grow in the coming years, but more than services through computers, there will be an increase in the use of applications on mobile devices, such as cell phones and tablets.

Standardization of Checks in Panama

June 2014

The Superintendency of Banks is preparing regulatory changes in order to reduce the time it takes to clear a check from three days to just one.

The rules that the regulator has proposed in Agreement 1-2014, issued in March, aims to improve safety and modernize the means of payment of the country, punctually, standardizing checks circulating in the Panamanian financial center.

Nicaragua: New Rules for Cashier´s Checks

March 2014

Security of documents is being reinforced using a new type of paper, watermarks, and visible and invisible fibers.

The Central Bank of Nicaragua (BCN) and the Association of Private Banks have agreed to implement, as of March 15, a series of reforms for bank checks. The goal is to stop the falsification of instruments such as these used to transfer money.

Tax on Banking Transactions in El Salvador

November 2012

The bill proposed by the government will levy a tax of 0.25% on the amount of electronic transactions and checks.

The bill entitled "Law on Taxes for Financial Operations", introduces a tax on checks and electronic transfers and a tax to control liquidity that applies to those transactions amounting to over $3,000.

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