Executive Summary
El Salvador has activated a national Tax Amnesty regime running from October 29, 2026 through December 11, 2026, allowing taxpayers to regularize outstanding obligations without penalties, interest, or surcharges.
Important Updates
El Salvador Tax Amnesty Regime Effective Through December 11, 2026
On October 29, 2026, the Ministry of Finance (Ministerio de Hacienda) announced a Tax Amnesty established under Legislative Decree and published in the Official Gazette. Effective immediately upon publication, the measure remains in force until December 11, 2026 and is administered by the General Directorate of Internal Taxes (DGII) and the General Directorate of Customs (DGA) under the oversight of Minister of Finance Jerson Posada. The regime provides natural persons and legal entities a one-time opportunity to regularize outstanding national tax obligations.
The amnesty waives late filing penalties, interest on overdue tax debts, surcharges for tax omissions or inaccuracies, and certain administrative fines related to formal non-compliance under the Tax Code. Covered liabilities include Income Tax, Value Added Tax (IVA), Special Contributions, and customs duties, while obligations arising from tax crimes already prosecuted judicially and debts subject to ongoing audits where the taxpayer has not accepted the assessment are excluded. Taxpayers must voluntarily disclose the full extent of their liabilities and pay the principal tax amount in full, either as a lump sum or through an approved installment plan not exceeding 12 months.
Domestic and foreign companies, including multinationals with permanent establishments in El Salvador, should assess whether historical transfer pricing adjustments or withholding tax omissions qualify for relief. Small and medium enterprises are expected to be the largest users. The amnesty applies exclusively to national taxes administered by the Ministry of Finance and does not cover municipal taxes, social security contributions, or obligations managed by other agencies. To access benefits, taxpayers must submit a formal application through the SAT en Línea portal or at any tax administration office before the December 11, 2026 deadline, supported by a sworn declaration detailing tax periods, concepts, and amounts owed. Upon approval, the authority issues a payment order for the principal amount. Failure to complete payment within the agreed schedule revokes amnesty benefits and reinstates all original penalties and interest, while post-deadline non-compliance exposes taxpayers to standard enforcement actions, including asset seizure and criminal prosecution for tax evasion.
Sources: Ministry of Finance El Salvador
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.