What are the Accounting & Taxation Requirements in El Salvador?

El Salvador is an up-and-coming Latin American economy, which has an attractive fiscal framework which has contributed to an increase in foreign interest and investment in the region. With a large, young and educated workforce coupled with attractive businesses incentives El Salvador is becoming a chosen destination for business within Central America.

Some principal taxes applicable to business activities in El Salvador: (1) Corporate income taxation, which is based on company profits, (2) Value added tax (VAT) which applies to most services and is set at 13% and (3) Capital Gains Tax (CGT) which is based on the profits generated from the disposal of assets.

Before beginning commercial operations in El Salvador, it is important to have a sound understanding of local accounting and taxation requirements. For more information about our accounting and taxation services in El Salvador, please get in contact with our local team.

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