BLP Newflash: Important legislation changes in El Salvador / February 2018

 

El Salvador

– February 2018 –

TAXES

Convention for the Harmonization of International Taxation on Commerce among the States Parties of the Central America Custom Union

The Legislative Assembly has ratified the Convention for the Harmonization of International Taxation on Commerce among the State Parties of the Central American Customs Union. The purpose of this Convention is to harmonize the different taxes on the commercialization of goods and services within the customs territory. The Convention applies to the operation carried out by economic agents in the State Parties taxed by(1) value aggregate taxes (VAT), (2) specific and selective taxes and (3) income taxes. In addition,  the Central America Unique Declaration and Invoice Document (Factura y Declaración Única Centroamericana,“FYDUCA”) was created. FYDUCA is a legal document that serves as an invoice to record the sale and purchase of goods and services and as a declaration for the withholding or payment of taxes.

(Official Gazette No. 230, published on December 8. 2017. Entry into force is eight (8) days after its publication in the Official Gazette)

INSURANCE

Authentic interpretation of article 2 of the Law against Money Laundering

The Legislative Assembly published an authentic interpretation of article 2 of the Law against Money Laundering, exempting insurance intermediaries duly registered in the Superintendence of the Financial System from naming a compliance officer and reporting to the Financial Investigation Unit of the General Attorney Office suspicious financial activities or operations that exceed the limits indicated by the abovementioned law.

(Official Gazette number 232, published on December 12, 2017. Entry into force is eight (8) days after its publication in the Official Gazette)

TECHNICAL FOOD REGULATIONS

The Salvadoran Authority of Technical Regulations repealed the following regulations:

Repealed regulations  Regulation that Replaces them
Salvadoran Rule NSO. 67.20.01.03, sugars, specifications Technical Salvadoran Rule (RTS) 67.06.01:13. Strengthening of Food specifications (sugar, salt, nixtamalized flour and pasta)

 

Published in the Official Gazette number 85 on May 5, 2017.

 

Salvadoran Rule NSO. 67.20.01.05, fortified salt with iodine.
Salvadoran Rule  NSO 67.03.02.08, flour, nixtamalized corn flour.
Salvadoran Rule NSO 67.03.03:09 Pasta specifications.

(Official Gazette number 234 published on December 14, 2017)

FOREIGN COMMERCE

The Ministry of Economy approved the following agreements regarding the tariff custom programs for 2018 in El Salvador:

Tariff program for the Free Trade Agreement between Central America and Dominican Republic
Tariff relief program for the Free Trade Agreement between Central America and Chile
Tariff relief program for the Free Trade Agreement between Central America and Panama
Tariff relief program for the Free Trade Agreement between Central AmericaDominican Republic and the United States of America
Tariff relief program for the Free Trade Agreement between Colombia and El Salvador, Guatemala and Honduras.
Tariff relief program for the Free Trade Agreement between China (Taiwan) and Honduras and El Salvador.
Tariff preference program for the Partial Agreement between El Salvador and Cuba
Tariff program for the Free Trade Agreement between Mexico and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua
Program to abolish custom tariffs for the Agreement that creates the Association between Central America and the European Union.
Preference tariff program for the Partial Agreement of Economic Compatibility between El Salvador and Ecuador.

(Official Gazette number 239 published on December 21, 2017)

AGRICULTURE

The Law for the Improvement and Renovation of Commercial Banks and Saving Associations, and the Law that Creates the Trust to Support Coffee Production were amended with the purpose of improving the financial help given to the coffee producers of the country.

(Published in the Official Gazette number 240, published on December 22, 2017)