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Investment & Legal Framework
Export Reactivation Law
The objective is to promote the export of goods and
services out of the Central American region.
Benefits:
• Reimbursement of 6% of the FOB tax on exports
destined to regions outside of Central America.
• No taxes are imposed on exported products.
• Customs tax exemption on imports of raw material
and intermediate goods for partial or temporary
operations abroad.
• The companies dedicated to assembly or maquila
abroad and that export, commercialize and
manufacture goods and services for a temporary or
partial period enjoy tax exemption on those goods of
an amount equal to the value of the property.
Tourism Law
The objective is to promote, encourage and regulate
the industry and tourist services in the country, which
are provided by any person or corporation, national
and/or foreign.
For a period of five years, starting from the date that
the law came into effect (December 28, 2005) all
new investments, qualified as beneficial for national
tourism for an amount at least S$50,000 that are
personal investments, have the fiscal benefits
contained therein.
Benefits:
• Tax exemption on the transfer of real estate and the
acquisition of property destined for the project.
• Tax exemption is granted including VAC tax on
imports of goods, accessories and equipment,
machinery, aircraft, coastal shipping and construction
material for project construction.
• Income tax exemption for a 10-year-period.
• Partial municipal exemption for a 5-year-period for
up to 50% of its value effective at the beginning of
operations related to the tourist activity.
International Service Law
The International Service Law is looking to convert
El Salvador into a world class international logistic
center.
This law establishes a legal framework with
clear rules for new opportunities to international
commercialized service areas with potential such
as international distribution, international logistic
operations, Call Centres, information technology,
business processes, and others.
The main objective of this law is to regulate the
establishment and functioning of service centers
and office parks as well as the benefits and
responsibilities of the owners of the companies that
are developing, administering and using them.
Benefits:
• Free introduction of machinery, equipment, tools,
parts, accessories, furniture, office equipment and
other goods that are necessary for the implementation
of the operational activity for the period they are
operating in the country.
• Income tax exemption, exclusively on the returns
emanating from the voluntary operations, for the
period that they are operating in the country. In the
case of companies, this exemption is applicable to
the owner of the company as well as to the individual
stockholders regarding the profits or dividends
emanating from the activity of the business.
• Municipal tax exemption on the assets of the
company for the period they are operating in the
country.
INTERNATIONAL LAWS
AND AGREEMENTS
In March 1991 the Accesion Agreement (MIGA)
was signed; it provides guarantees and insurance
to foreign investors against non-commercial losses
and risks, foreign currency transfers, expropriation,
war, civil disturbances, revolutions, and breaches of
contract.
El Salvador is member of the Foreign Private
Investment Corporation, a U.S. government agency,
and has subscribed reciprocal bilateral agreements
for promotion and protection of investments with
Spain, France, Switzerland, United States,Argentina,
Ecuador, and Peru. It is currently negotiating with
another twelve countries.
In addition it cooperates with the following commercial
and economic organizations:
• Banco Centroamericano de Integración Económica
(BCIE) - (Central American Bank of Economic
Integration)
• Banco Interamericano de Desarrollo (BID) – Inter
American Development Bank (IDB)
• Banco Mundial (BM) – World Bank (WB)
• Comisión Económica de las Naciones Unidas para