El Salvador: tax amnesty for companies until December
El Salvador has announced a tax amnesty for individuals and legal entities, which will remain in effect until December 11. Until that date, outstanding fines and interest payments will be waived.
The General Directorate of Internal Taxes (DGII) will allow companies that meet the requirements to settle their outstanding tax liabilities without any surcharges or penalties. In addition, the Ministry of Finance is allowing payments to be made in up to nine monthly instalments, making it easier for taxpayers to bring their accounts up to date.
Reasons behind the measure
Salvadoran authorities aim to improve tax and customs compliance among taxpayers conducting business in the country. The amnesty provides companies with an opportunity to meet their outstanding obligations without the additional burden of penalties. It also seeks to foster a more predictable business environment.
This is not the first time El Salvador has introduced such a measure: more than 56,000 taxpayers took advantage of it in October 2025. The Legislative Assembly approved the new amnesty a few weeks ago, allowing companies to settle their outstanding obligations from that point onwards.
Impact on local and foreign companies
The country aims to streamline tax processes and offer greater operational flexibility to local and foreign companies looking to invest in El Salvador. For multinational groups with subsidiaries in the country, the December 11 deadline provides an opportunity to review their tax position and settle any outstanding liabilities before the amnesty period ends.
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Author:
Gisela Steven
Country Manager – AR
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