Commercial Companies and Their Obligations in El Salvador: Municipal City Hall – Ministry of Finance – 2024
Every company must register with the municipality where its headquarters are located, also registering and performing the “Establishment Registration” in case it opens and has branches within that jurisdiction. In addition to this, different annual registrations/renewals for operating licenses, signage permits, alcohol licenses, and other relevant permits based on the company’s economic activity and business line must also be taken into account.
Regarding the declaration and payment of municipal taxes, this must be submitted before March 31 and payment must be made before April 30, for the taxes corresponding to the previous year, following the guidelines of each municipality.
As for the Ministry of Finance, companies subject to tax are required to file an income tax return, liquidating their income, the corresponding tax, and making the payment.
This must be filed within the first 4 months of the year, and the taxable income will be calculated by applying a 30% rate; except for those with taxable income equal to or less than USD 150,000.00, to which a 25% rate will apply.
If you would like more information on this, you can contact us at aportillo@lexincorp.com.
Written by: Luis Vides
