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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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DECREE NO 179
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
WHEREAS:
I.-That by Legislative Decree No. 230, dated September 14, 2000, published in Official Journal No. 241, Volume No. 349 of the same month and year,
the Tax Code was issued, which states that the not domiciled will be subject of withholding tax on income, in a percentage of twenty percent
II.
II.-That the percentage mentioned above is greater than that in other countries in the region, which causes a disincentive to foreign investment, especially
of those who perform operations on the stock market, It is in the interest of foreign capital to escape, lower economic growth and consequently lower tax revenues.
III.-That the above is necessary to reform Article 158 of the Tax Code, reducing the percentage of Withholding tax in order to eliminate asymmetries with capital markets
FOR TANTO,
in use of its Constitutional powers and on the initiative of the Deputy Douglas Leonardo Mejia Avilés of the legislative period 2012-2015, and of the Deputy Francisco José Zablah Safie.
DECRETA the following:
TAX CODE REFORM
Art. 1.-Reform the fourth paragraph of Art. 158, as follows:
" The sums paid or credited to natural or legal persons, unions of persons, irregular or de facto societies, successions and trusts, not domiciled in the country, which comes from
by way of income and income of capital invested in securities securities, or transactions in securities, shares and other investments made in the market of Salvadoran securities, is primary or secondary, through the Stock Exchange, shall be subject to the retention that the
point 1 of this article, in a percentage of three percent (3%). "
Art. 2. This Decree shall enter into force eight days after its publication in the Official Journal
.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twelve days of the month of November of the year two thousand fifteen.
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LORENA GUADALUPE PEÑA MENDOZA, PRESIDENT.
GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALMASEZ DE ESCOBAR,
FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
JOSÉ SERAFIN ORANTES RODRÍGUEZ, NORMAN NOEL QUIJANO GONZÁLEZ, THIRD VICE-PRESIDENT. FOURTH VICE-PRESIDENT.
SANTIAGO FLORES ALFARO, FIFTH VICE PRESIDENT.
GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA, FIRST SECRETARY. SECOND SECRETARY.
MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LÓPEZ CARDOZA, THIRD SECRETARY. FOURTH SECRETARY.
JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL,
FIFTH SECRETARY. SIXTH SECRETARY.
ABILIO ORESTES RODRÍGUEZ MENJÍVAR, JOSÉ FRANCISCO MERINO LÓPEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.
CASA PRESIDENTIAL: San Salvador, twenty-four days of the month of November of the year two thousand fifteen.
PUBESQUIESE,
Salvador Sánchez Cerén, President of the Republic.
Juan Ramón Carlos Enrique Cáceres Chávez,
Finance Minister.
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D. O. N ° 216 Took N ° 409
Date: November 24, 2015
JQ/pch 14-12-2015
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