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El Salvador Introduces a Minimum Corporate Income Tax and Other Changes

|Proposed Changes|El Salvador
El Salvador

On 16 May 2014, El Salvador's Minister of Finance proposed a reform package to amend the tax law. Main changes include:

  • The introduction of a minimum corporate income tax of 1% on the value of net assets, which is payable if higher than the income tax due based on net income in a tax period - this replaces the alternative minimum tax that was ruled unconstitutional in November 2013
  • The introdu…

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