El Salvador has a special temporary law that allows taxpayers to pay taxes and municipal fees without interest or fines in the 262 municipal governments of El Salvador.
However, many people are unaware of who can benefit from this new regime and what steps to follow. For this purpose, our associate lawyer, Adalicia Torres, shared some advice and steps on the morning segment "5 Minutes of Legal" on Radio Femenina.
Our specialist in regulatory and tax matters explains that "amnesty means forgiveness" and an opportunity to catch up on tax payments, providing a waiver for individuals and legal entities.
"If there are people who owe the municipality for years but have been unable to pay due to fines and interest, this amnesty forgives the fines and interest that have accumulated," commented Torres.
To apply for the benefits, Muñoz stated that the first step is to consult with a legal advisor to determine if one is eligible for the municipal tax amnesty.
"There are fines that can be appealed, and there are others that can be covered by the tax amnesty, allowing individuals to start 2023 without any tax issues with the municipality," Torres explained.
Next, to take advantage of the measure, Torres emphasized that individuals should go to the designated service points established by the municipalities or make payments via bank transfer once they receive the bank account details during the validity of the law.
Our expert indicated that the beneficiaries are all citizens who did not appeal the decision, whose cases are not finalized, or whose debts were not in judicial collection before 2021.
"If there are fines or interest that have not been paid to the municipality, for example, in the years 2018, 2019, or 2020, individuals can approach and this will allow them to carry out many procedures that they couldn't do due to being fined," added our head of the Regulatory and AML Department.
Torres mentioned some problems that individuals face when they do not pay their taxes and accrue fines and interest. For example, the taxpayer cannot make modifications to their house or establishment because they require a municipal clearance. They will not be able to start a business or renew the company's registration.
You can contact us through our social media or visit our offices located at Calle Cuscatlán, #4312, Colonia Escalón, San Salvador.
-Written by the Torres Legal Team.