The Salvadoran Legislative Assembly passed a special transitional law enabling citizens to voluntarily settle their tax, customs, and traffic debts. The law was approved during the September 3 plenary session, with 57 legislators voting in favor of the bill.
This legislation, known as tax amnesty, will enable taxpayers to settle their tax, customs, and traffic fines without incurring penalties or interest.
Individuals will have 90 days from the law’s effective date to take advantage of the amnesty.
They can pay the full amount in a lump sum without penalties or interest or opt for a payment plan over nine installments, with the first payment being 10% of the debt.
According to the deputies, this law will assist those who have fallen behind on their government debts by allowing them to pay without facing fines.
We approved a transitional law to make it easier for Salvadorans to pay their tax obligations and traffic violations. For 90 days after this decree comes into force, citizens will be exempt from paying interest, surcharges and late fees, a great opportunity to catch up and avoid inconveniences.”
Deputy Ernesto Castro.
The exemption from interest surcharges on traffic fines does not eliminate the fines themselves, as tax authorities lack the authority to do so. However, they do have the legal power to request the exemption of interest on those fines.
For example, if someone has a traffic fine and has not been able to pay it to the Vice Ministry of Transportation (VMT), they can adhere to this decree and will have around 90 days to make the payment.
This is not the first amnesty approved by the Legislative Assembly in these areas. In 2023, lawmakers passed a similar decree that benefited over 36,000 Salvadorans.
At that time, the Treasury collected over $100 million in taxes, with 57% of the revenue coming from small taxpayers who opted to participate in the amnesty process.
