In order to assess risks, verify regulation and other issues, the Central American Bank for Economic Integration will provide the Salvadoran government with advice on the implementation of the new cryptocurrency scheme, called Bitcoin.
After the dismissal of the magistrates of the Constitutional Chamber and the Attorney General in El Salvador, the business sector affirms that these are "facts that consolidate an attack against democracy and threaten the liberties of Salvadorans".
In the elections held last February 28, Nuevas Ideas, a party led by president Nayib Bukele, achieved a resounding victory that allows it to have a qualified majority in the Legislative Assembly.
After Nuevas Ideas, the party led by president Nayib Bukele, achieved a convincing victory that would allow it to have a qualified majority in the Assembly, the country will face a scenario in which this political group would have enough power to make transcendental decisions.
While the health emergency lasts in El Salvador, online purchases made by individuals from U.S. companies, which do not exceed $200, will not pay taxes.
In response to the outbreak of covid-19 in the country, the Law on Facilitation of Online Purchases was issued, which allows for the promotion and facilitation of the import of goods or merchandise of a non-commercial nature, i.e.
In El Salvador, there is a demand that the updating of the Law on Public Administration Procurement and Contracting that the deputies seek to make be carried out without neglecting the principles of competition and transparency.
After the Executive submitted the amendments to the draft reform of the Public Administration Procurement and Contracting Law (LACAP) to the Legislative in 2019, a sub-committee of the Assembly is examining the proposals.
Nayib Bukele returned to the Legislative Assembly the reform to the law of Free Zones that granted tax benefits for an additional period of 10 years to companies in the country to increase their investment in 100% with respect to the initially made.
On August 29, 2019, the Assembly informed that the Legislative Plenum endorsed the reform to the Law of Industrial and Commercial Free Zones, establishing that the users of these zones would have a term of 10 additional years (before there were five) to continue enjoying total exemption from taxes, which would be applicable once the period established for the regular enjoyment of this benefit expired.
A bill was presented to create fiscal and economic incentives for companies and individuals using electric vehicles.
The bill "Ley de Transporte Electrico", presented by the organization Mover El Salvador to the Legislative Assembly, seeks that each new electric vehicle or new hybrid electric vehicle be the object of benefits.
The Legislature has approved a loan with the International Cooperation Agency of Japan to build an overpass in the city of San Miguel.
From a statement issued by the Legislative Assembly of El Salvador:
The Bypass of San Miguel will become a reality after the unanimous backing of the Legislative Assembly for the ratification of the loan agreement between the government of El Salvador and the International Cooperation Agency (JICA), for a total of $122.5 million . For the construction of this work, which is projected to be the most modern and secure in the region, the Salvadoran State will provide a counterpart of $36.8 million.
Progressing through the assembly is a bill that aims to raise the tax burden from 15% to 18% over the next five years, without establishing limitations on expenses and borrowing by the state.
The initiative includes as fiscal target to reach a minimum gross tax burden equivalent to 18% of GDP, over a period of five years.
"...The ruling, which was promoted by the FMLN, establishes a set of general goals that the Government aims to comply with over a period of five years. This proposal is far from the one proposed by ARENA in Congress since 2012, which contained measures restricting spending and government borrowing, with the same purpose: to improve finances ".
Reforms have been made to the Law on Privatization of Mills and Alcohol Plants to give a three year extension to the timeframe for selling shares of mills owned by the Salvadoran Investment Corporation.
From a statement issued by the Legislative Assembly of El Salvador:
The Legislature approved on Wednesday, with 44 votes, an amendment to the Law on Privatization of Mills and Alcohol Plants in order to extend for three years the period for the Salvadoran Investment Corporation (CORSAIN), to sell shares of some mills that were subject to privatization and are still owned by them.