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Decree 520. Fire Brigade Law
[/vc_column_text][us_separator][vc_column_text] On October 4, 2019, the El Salvador Fire Department Law was enacted and will enter into force sixty days after its publication in the Official Gazette. The purpose of this Law is to establish the functions and regulate the activities of the Fire Department. These include: – Fire prevention, control, and extinguishing; – Protection of people and property; – Evacuation and rescue activities; – Cooperation and assistance in the event of a disaster; and other related activities. Fire department personnel will receive technical and scientific training at the Fire Department's Continuing Education Center; this training will be mandatory for all public servants of the Fire Department. It will also include the Fire Department's Prevention and Safety Unit, responsible for, among other things, research, study, and prevention. It will also be empowered to conduct inspections in public or private establishments to verify compliance with prevention programs or safety measures. Safety Measures are required for construction and fireworks-related activities; in both cases, the issuance of a certification, following review, will be required. This Safety Measures certification will be valid for one year from its issuance and must be requested by the interested party from the Fire Department. The Fire Department's assets consist of the allocations established in the General Budget of the Nation; movable and immovable property owned by the Fire Department; donations, inheritances, and legacies; extraordinary contributions granted by the State; fees for services rendered; among others.AD VALOREM TAXIts articles establish an ad valorem tax, the proceeds of which will be incorporated into the General Budget of the Nation. The taxable event will be the purchase of all types of insurance (policy extensions, renewals, or modifications).They are excludedInsurance contracted for all types of bank and non-bank loans, and by persons – legal or natural – authorized to grant loans (extension, renewal or modification of policies).Tax Base and RateThe tax will be 5% of the premium amount insured, as well as the extension, renewal, or modification of policies, excluding the Tax on the Transfer of Movable Property and Provision of Services from the price.
- The taxpayers will be insurance companies, who are prohibited from passing on the 5% tax to those who purchase insurance.
- The tax will be due at the time of payment for the sale, extension, renewal, or modification of the insurance.
- The tax and settlement period will be 1 calendar month, for this reason:
- Insurers must file a monthly sworn statement with the Internal Revenue Service (IRS) with information on the taxable transactions for each transaction, which can be done electronically.
- The obligation to file it will continue to apply even if there have been no transactions during the tax period.
To file the return and remit the tax amount, taxpayers will have a maximum period of 10 business days after the end of the tax period. [/vc_column_text][us_separator][vc_column_text] Written by: Lic. Valeria García [/vc_column_text][/vc_column][/vc_row]
