The Congress of The Savior This Tuesday, it reformed a law to eliminate the collection of taxes on capital transfers from abroad, including remittances, in order to encourage investment in the Central American country.
“We have reformed the Income Tax Law to eliminate that barrier that limited (international) investors from injecting capital into El Salvador“said the president of the Congress, Ernesto Castro.
The reform to the regulations was approved with the votes of 69 of the 84 deputies of the unicameral Congress, dominated by allies of President Nayib Bukele.
In fact, the president in his X account commented that with the reform “lowering the rate from 30% to 0%” to any capital or “Money transfers” coming from abroad.
The deputy of the ruling party New ideas, William Sorianopointed out that with the elimination of taxes on capital transfers “will benefit natural or legal persons” that inject money into the country’s economy for investment or working capital, for example.
The sending of family remittances made by Salvadorans from abroad is also free from tax collection.
About three million emigrated Salvadorans, residing mainly in USAhelp support the country’s economy by sending remittances, which amounted to US$ 8,181 million in 2023, close to 26% of GDP, according to official figures.
Source: Gestion
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