Special Tax Law For Coexistence And Citizen Security.

Original Language Title: LEY DE CONTRIBUCIÓN ESPECIAL PARA LA SEGURIDAD CIUDADANA Y CONVIVENCIA.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

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DECREE N ° 162

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That according to Art. 2 of the Constitution of the Republic, every person has the right to life, to physical and moral integrity, to freedom, to security, to the

work, to property and possession and to be protected in the conservation and defense of the same.

II.-That according to Art. 131, Ordinary 6th of the Constitution of the Republic, it is up to the Legislative Assembly to decree taxes, taxes and other contributions on all kinds of goods, services and income, in relation

equitable.

III.-That in recent years there has been a serious aggravation in the field of

criminality in the country and in the region, due to the progressive emergence of new forms of criminality, which are characterized by type In some cases, they go beyond the national borders.

IV.-That these criminal organizations, as stated in the constitutional case law, through the systematic, widespread, organized and organized use of indiscriminate violence, they aim to intimidate large sectors of the

population, with the object of affect the structures of the Nation and, above all, limit the exercise of the fundamental rights of the population, such as life, property, education, free transit, work, among others; thus threatening the

State of Law.

V.- That the exceptional situation pointed out, makes it necessary for the State, in reason

of its constitutional obligation to assure the inhabitants of the Republic the enjoyment of their rights and, in general, of their legal goods, adopt a series of measures to comprehensively combat these new forms of criminality

and also implement plans and policies aimed at the prevention of violence, control and criminal prosecution, rehabilitation and reintegration, protection and attention to victims and institutional strengthening, with the aim of achieving

that El Salvador is a

VI.-That with the consensus of state institutions, broad sectors of society

organized civil, political parties, churches, academic sector, media and organizations international, has achieved the articulation of a comprehensive and national plan, called Plan El Salvador Seguro, for

to respond to the structural factors of violence and criminality in the country, which provides for concrete results in the immediate, short, medium and long term. To achieve its results, this plan considers, around the established axes, a series of articulated actions that require input

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of significant financial resources.

VII.-That at present, finance Ordinary public are not enough to contribute to the implementation of the different actions prioritized in the plan of citizen security and cohabitation, which makes it necessary to decree,

on a temporary basis, a special contribution, which will serve as a contribution to the establishment of a special fund, which will satisfy a general interest, through the realization of works and special activities of the State that

will report advantages and direct benefits to the population.

VIII.-That the benefits of the special contribution for the They will be obliged to pay them

in the facilitation of their economic activities, the creation and conservation of job opportunities, the safeguarding of their property and the maintenance or increase of their value, among others, which in definitive

will improve the conditions for achieving its integral development.

IX. Recognizing the determining economic content, in terms of

manifestation of wealth, involving the acquisition and utilization of the telecommunications services in all its modalities, in addition to the relevant and progressive degree of The mass that it has acquired in our days, it is pertinent that the special contribution to establish, serious to the users of such services,

in the related with the mobile and fixed telephony, the television subscription by means of wire or wireless or by any other physical means, the transmission of data between two or more points related to information provided

by the user, without any end to end changes in form or content of the information, as well as the acquisition of technological devices, terminals and devices that allow the use of such services.

FOR TANTO,

in use of its Constitutional powers and on the initiative of the President of the Republic, through the Minister of Finance.

DECRETA the following:

LAW OF SPECIAL CONTRIBUTION FOR SECURITY CITIZEN AND COHABITATION

Object of Law

Art. 1. The purpose of this Law is to establish a special contribution to Citizen Security and Coexistence, which will be the responsibility of the acquisition and/or use of telecommunications services in all its forms, regardless of the technological means, terminals,

devices or devices used for their consumption, according to the scope set out in this Law; and, on the transfer of any type of technological device, terminals, apparatus and accessories thereof for the use of services of

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For the purposes of this Act, telecommunications services shall be understood as all those that are offered to the general public in all its modalities, whether transmitted by

wired or wireless means or by any other physical means; including, but not limited to, fixed and mobile telephony, television by subscription, data transmission and satellite services.

Other terms (a) technical specifications used in this Law, related to telecommunications services in all their modalities, shall be understood in accordance with the provisions of the Telecommunications Act and its Rules of Procedure, except for another definition which expressly set forth in this Act.

Statement of Public Interest

Art. 2. State of necessity and public interest the execution of the actions provided for in the Plan El Salvador Seguro, which articulates priority efforts of the State and private entities for the prevention of violence, control and criminal prosecution, Rehabilitation and social insertion, care and protection

of victims and the institutional strengthening of the competent authorities.

General Acts

Art.3.-Establish a Special Contribution for Security Citizen and Coexistence, in future special contribution, which will have as facts generators the following:

a) Payment of public telephone, fixed, and mobile services;

b) Payment for lease or any mode of hiring of

television by subscription, whether received by wire, wireless or any other physical means;

c) Payment for the lease or any mode of hiring of data transmission services between two or more points related to information provided by the user;

d) Transfer to any title, import or final hospitalization of technological devices, terminals or apparatus and accessories thereof enabling the use

of the services referred to in this Article, inter alia, but not limited to: fixed or mobile terminals, tablets electronic devices, devices, cards containing the subscriber identification module (SIM) and other accessories, whether given

on tenancy or as such, excluding computers or electronic computers and televisions; and,

e) The removal or disaffection of technological devices, terminals or apparatus and accessories of the same ones that allow the use of the services mentioned in this provision, that are attached to the realizable asset of the suppliers of such

goods; as well as the self-consumption of the services of telecommunications in all its forms, produced by the same suppliers, made for the consumption or personal use or own of the partners, managers, proxies or personnel of the company, to the family group of any of them or in favour of third parties free of charge.

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The payments of the services referred to in (a), (b) and (c) of this provision, constitute operative events for the special contribution when the services are contracted in the country.

It is understood that the service is contracted in the country, when the activity generated by the service starts or is developed in the country, including completed reverse charge calls in the country and

roaming (roaming).

Passive Subjects

Art. 4.-They are taxable persons of the special contribution that this Law regulates and consequently, obliged to the payment of the same, the following:

a) The users and resellers of telecommunications services in all its modalities, regardless of the technological means used for their use

and the modalities of recruitment for the receipt thereof, whether provided by natural or legal persons who are operators of commercial networks of telecommunications;

b) The acquirers of any technological device, terminal or apparatus and accessories thereof enabling the use of telecommunications services in all their modes, including on tenancy or comodato;

c) Importers or internators of any technological device, terminal or apparatus and accessories thereof that allow the use of telecommunications services

in its different modes;

d) Representatives of the users of the telecommunications services and who under their

orders or instructions must employ telecommunications systems; and,

e) The taxable persons dedicated to the provision of telecommunications services which

undertake the withdrawal or disaffectation of technological devices, terminals or apparatus and accessories thereof which enable the use of telecommunications services, as well as those performing the self-consumption of produced telecommunications services

by the same.

They will not have the quality of passive subjects of the special contribution:

a) Diplomatic, consular, personal missions foreign diplomats and consular posts accredited in the country, under the principle of reciprocity; international agencies,

development or cooperation agencies of foreign countries or countries; and,

b) taxable persons engaged in the activity of International Centers of

Calls, known in trade international "call center" or "contact center", who are enjoying the benefits of the International Services Act.

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Retention Agents

Art. 5.-They are responsible for the payment of the special contribution, as retention agents:

a) The providers of telecommunications services in all their modalities, whether

that are provided separately or in plans integrated, including two or more services;

b) Subscription television service providers, by wire means,

wireless or by any other physical means;

c) data between two or more related points

with information provided by the user, by any mode or technology; and,

(d) taxable persons transferring technological devices, terminals or apparatus and accessories thereof, enabling the use of the services referred to in Article 3 of the This Law, being understood, but not limited to: fixed terminals

or mobile, electronic tablets, apparatus and accessories thereof, including those that are given in lease or comodato.

The General Directorate of Taxation Internal is empowered to designate, by resolution,

as responsible, in character of holding agents of the special contribution, to other subjects other than those referred to in the first paragraph of this article.

The withholding agent is responsible for the payment of the special contribution.

The special contribution must be retained by the Retention Agents at the time

in which the same is caused.

Time when Special Contribution is Caused

Art. 6.-The special contribution is understood to be caused by:

a) In the telecommunications services in all their modalities, at the time the payment is made;

b) In the transfers, when the device is delivered technological, terminal or apparatus permitting the use of the services referred to in Article 3 (a), (b) and (c) of this Law, to any title, or when payment is made, whichever is the case

first;

c) the definitive imports and internations referred to in this Law, when you have

place the import or final admission;

d) In services or transfers, the consideration of which is agreed upon under partial payment, the special contribution shall be made at the time of the partial payment. In the services of

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telecommunications under prepaid mode, special contribution to be considered at the time of payment of the same; and,

e) In the withdrawal or disaffection of technological devices, terminals, apparatus and accessories thereof that allow the use of telecommunications services in all

their modalities, the special contribution on the date of withdrawal shall be understood of the goods. In the self-consumption of services that are produced by the providers of the services, the contribution will be caused when the use is verified or

use of those services.

Imposable and Alicuota Base

Art. 7.-The aliquot of the special contribution is five percent (5%) and will apply to the taxable amount determined according to this Law.

The tax base of the special contribution on the various operative events will be the value of the consideration, excluding the Furniture and Delivery Transfer Tax

of Services and the present special contribution. In the case of partial payment with partial payment, the rateable value will be the value of each partial consideration.

For telecommunications services provided in an integrated or converged form

to determine the tax base shall be added to all the values of the consideration for each service, per month or partial payment, corresponding to the same borrower.

In cases of withdrawal or disaffection of technological devices, terminals or apparatus and their accessories and self-consumption of telecommunications services in all of its modalities, the taxable amount shall be the value that the supplier has assigned to them as the selling price to the public, according to their documents

and accounting records and in the absence of these, the current market price.

In the case of The definitive imports and internations referred to in this Law, the basis

taxable is the amount resulting from adding to the customs value the corresponding tariff duties.

Obligations of the Retention Agent

Art. 8.-Retention agents are required to:

a. Retain the special contribution relative to the different operative events regulated in this Law;

b. Keep records of the operations subject to retention with the following specifications:

1. Name of the service user;

2. Service delivery period;

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3. Services classes provided;

4. Amount charged to the user, excluding VAT and special contribution;

5. Value of the special contribution applied;

6. Correlative number of the issued document authorized by DGII;

7. Telephone number on behalf of the user, if any;

8. Account number for the service provided, as appropriate; and,

9. Identification of the transferred apparatus, as appropriate.

Such registration shall be made available to the General Directorate of Internal Revenue, when required in the exercise of its oversight functions, inspection, investigation and control;

c. Issue and deliver to the taxpayer the document in which the individual or accumulated special contribution is recorded at the user's request. The issuance of the constancy shall comprise a monthly period. The Internal Revenue Directorate may

authorize another mechanism to document the special contribution;

d. Return any retentions that are improperly or excessively made to the

contributors, including when they are the product of a fraudulent operation to the detriment of the user;

e. Submit an affidavit for a monthly tax period, through an electronic form that the Tax Administration makes available, by entering at the same time the amount of the special contribution that has been withheld

f. Any other obligation established by the Internal Revenue Directorate, necessary for the effective control of the special contribution.

Declaration and Integer

Art. 9.-The tax period will be a calendar month. The Agents of Retention shall be obliged to submit an affidavit to the Tax Administration, by means of electronic form and under the technical specifications that it establishes. The affidavit is

shall record the taxable and exempt transactions, the value of the tax base of the consideration and the withholding of the special contribution made. The submission of the statement remains although the Retention Agent has not performed any tax on the tax period.

Special contribution deductions made by the Retention Agent must be entered into the State General Fund, by means of a sworn declaration that must be filed within the legal period of the first ten working days after the end of the tax period.

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The special contribution on final imports and internations will be settled to the General Directorate of Customs, in the same act in which customs duties are settled.

The special contribution paid at the time of the importation or hospitalization of the goods that this Law deals with, which are subsequently transferred For the use of

Telecom services, you can to prove against the settlement of the contribution resulting from the tax period by the Retention Agent or taxpayer.

The special contribution contained in this Act does not constitute for taxable persons, costs or expenses deductible for income tax purposes.

Special Contribution Administration

Art. 10.-The administration of the special contribution set forth in this Law will

to the Tax Administration, according to the Tax Code.

Destination of the Special Contribution

Art. 11.-The resources from this special contribution will be used solely and exclusively for citizen security and coexistence, which will be realized among other benefits in strengthened security institutions, in the enjoyment of efficient institutional services for the

prevention of violence, the recovery of public spaces and the reduction of the incidence of crime in these, reducing the number of children, adolescents and young people who do not study and not work, the reduction of violence in the family and abuse of women, the promotion of " Alternate resolution

of neighborhood conflicts, increased effective judicialization of serious crimes, reduction of delinquencies in crime investigations, strengthening of control and improvement of conditions in the centers penitentiary, the development of programs for the reintegration and prevention of crime, the strengthening of

the capacities for the protection, attention and reparation of the victims and the improvement of the system of administration of justice; all of which will result in benefits such as the facilitation of economic activities, creation and conservation of job opportunities, property protection and the

maintenance or increase of their value.

Previous activities prior to the authorization of the President of the Republic, will be executed

various public sector institutions and municipalities, based on specific projects for this purpose; contemplated in the plans of citizen security and coexistence.

Budget Allocation

Art. 12.-The funds received for the special contribution referred to in Article 3 of this

Law shall be incorporated into the budget of the Ramo of Finance for the corresponding fiscal year, and the structure shall be established. the budget that identifies the allocation of the resources and the destination, according to the previous article.

This allocation may be extended, after legislative approval, with the excess of the amount of income that is (a) see in particular the special contribution.

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National Council for Citizen Security and Coexistence

Art. 13.-The National Council for Citizen Security and Coexistence may recommend priorities for the execution of funds from the special contribution.

The Ministry of Finance and the executing units, quarterly, must submit a report to the National Council for Citizen Security and Coexistence on the use and budgetary execution of the funds collected and their results; without prejudice to the audit of the Court of Auditors of the

Republic.

Application of Tax Code and Tax Laws

Art. 14.-In order to comply with the provisions of this Law, especially in matters of sanctions, expiration and procedure,

provisions contained in the Code shall apply in respect of this special contribution

Tax, Central American Uniform Customs Code, Special Law to Punish Customs Violations, Customs Laws and any other relevant tax laws.

The Tax Administration will issue regulations that facilitate the application of this Law, establishing in it among others, the way they will be to carry out the necessary retentions and controls. For such purposes, it can be supported by the General Superintendence of Electricity

and Telecommunications.

Preeminence of this Law

Art. 15.-This Law shall prevail over any legal body that the contrarié, in relation to the elements that make up the special contribution.

Vigencia

Art. 16.-This Decree will enter into force eight days after its publication in the Official Journal and its effects will last for a period of five years.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twenty-nine days of the month October of the year two thousand fifteen.

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,

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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, 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, Minister of Hacienda.

D. O. N ° 203 Took N ° 409

Date: November 5, 2015

JQ/geg 25-11-2015

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