Downtown San Salvador, El Salvador.
LA LIBERTAD, El Salvador — Taxpayers may soon get another chance to settle outstanding debts without paying interest or surcharges, following a new proposal from El Salvador’s Legislative Assembly.
On Monday, October 13, the Finance Commission approved an opinion to extend by 60 days the period allowing individuals and businesses to regularize tax, customs, and transit debts without added fees. The measure still awaits approval from the whole legislative body.
If endorsed by the Assembly, the extension would let taxpayers pay only the original amount owed, excluding accumulated interest and penalties. The 60-day countdown would begin once the law takes effect.
The Ministry of Finance requested continuation of the Special and Transitional Law that Provides Facilities for Voluntary Compliance with Tax, Customs, Transit Obligations and Other Fines, first approved in 2023.
The law enables taxpayers to resolve outstanding debts with the treasury and other state institutions under favorable terms.
Beneficiaries would include those with pending cases before the General Directorate of Internal Taxes, the General Directorate of Customs, the Court of Appeals for Internal Revenue and Customs, and the Contentious-Administrative Jurisdiction.
The measure also covers fines handled by the Attorney General’s Office and traffic violations under the Land Transportation, Traffic and Road Safety Law.
Income tax returns submitted through July 31, 2025, would qualify under the proposal. However, municipal fines remain excluded from the extension.
Internal Revenue Director Marvin Sorto clarified that fines are not eliminated—only interest generated by them. He added that taxpayers must still pay the principal amount within the legally established period.
According to the Ministry of Finance, these payment facilities have saved citizens about $47.4 million, funds the government says have been reinvested in business working capital.
In 2023, more than 36,000 Salvadorans benefited from the program, generating $100 million in revenue for the state.
In 2024, participation increased to 59,493 taxpayers, who contributed $105.6 million.
The ministry reported that small taxpayers made up 63% of participants, contributing $66.6 million, while large and medium taxpayers represented 23% and 14%, respectively.
