Reforming The Tax Law On The Transfer Of Goods And Chattels And The Provision Of Services, Arts. 65 And 66.

Original Language Title: Refórmase la Ley de Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios, Arts. 65 y 66.

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/reformase-el-inciso-segundo-del-articulo-65-y-el-inciso-sexto-del-articulo-66-de-la-ley-del-iva/archivo_documento_legislativo

1. Decree No. 832 the Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that through Legislative Decree N ° 296, dated July 24, 1992, published in the official journal N ° 143, Tome N ° 316, 31, the same month and year, issued the tax law on the transfer of goods and chattels and the provision of services.
II.-that article 66 of this law establishes, that when transactions in a tax period are partly taxable, partly exempt or not subject, the tax to deduct from the tax debit, credit will be set based on a factor determined by the taxed operations of the period divided by the sum of transactions taxable, exempt and not subject by applying this factor to the tax credit for the tax period.
III.-that according to the Vienna Convention on diplomatic relations, is coming to recognize the application of the principles of reciprocity and more favourable nation, that govern international relations.
IV.-that in view of the principles concerned, becomes necessary to create, within the tax law on the transfer of goods and chattels and the provision of services, the necessary mechanisms to benefit the missions of diplomatic, consular, international organizations and their members in El Salvador, who constantly acquire at home for personal use, mission or develop their projects in support of the Salvadoran State-accredited goods and services from their local providers.
Therefore, use of its constitutional powers and the initiative of the President of the Republic, through the Ministers of finance and Foreign Affairs.
DECREED: the following reforms to the law of tax to LA transfer of goods furniture and to the provision of services article 1.-replace in article 65, the second paragraph by the following: "the operations referred to in the preceding paragraphs must be indispensable to the object, money or activity of the taxpayer and the generation of operations taxed with this tax and that therefore" , generate debit tax operations taxed at rate zero percent, of donations of goods or services made to the institutions referred to in article 6 of the law of 2 tax on income and sales operations undertaken in favor of missions, diplomatic, consular, international organizations and its members accredited to the Government of the Republic of El Salvador; otherwise not be deductible tax credit."
Article 2.-replace in article 66, the sixth subparagraph by the following: "If there are no tax credits attributable to operations not subject to the payment of the tax, and these come from unusual activities of the taxpayer, will not be included such operations in the calculation of proportionality. Neither will be included in the calculation of proportionality, operations consisting of donations of goods or services made by the taxpayer under the terms provided in the final paragraphs of articles 11 and 16 of this Act, the institutions referred to in article 6 of the income tax act; also, the operations of sales of goods and services that the contributors to the missions of diplomatic, consular, international organizations and its members accredited to the Government of the Republic of El Salvador, when these have been declared as free or not subject to the payment of tax that regulates this law, in accordance with the respective international instruments signed and ratified by El Salvador. The above, without prejudice to compliance with other tax obligations that this law or the tax code established with respect to the transactions that are not subject."
Article 3.-this Decree shall enter into force eight days after its publication in the official journal.
GIVEN in the blue room of the Legislative Palace: San Salvador, on the thirtieth day of the month of October in the year two thousand fourteen.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
JOSE FRANCISCO MERINO LÓPEZ, LORRAINE GUADALUPE PENA MENDOZA, THIRD VICE PRESIDENT. FOURTH VICE PRESIDENT.
CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.
WILLIAM FRANCISCO MATA BENNETT, MANUEL VICENTE MENJIVAR ESQUIVEL, FIRST SECRETARY. SECOND SECRETARY.
SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.
IRMA PALACIOS LOURDES VASQUEZ, ERNESTO ANTONIO ANGLE MILE, FIFTH SECRETARY. SIXTH SECRETARY.

3 FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN RODRIGUEZ ORANTES, SEVENTH SECRETARY. EIGHTH SECRETARY.
Presidential House: San Salvador, to the three days of the month of November in the year two thousand fourteen.
PUBLISHED, Salvador Sanchez Ceren, President of the Republic.
Juan Ramon Carlos Enrique Caceres Chavez, Hugo Roger Martinez Bonilla, Minister of finance. Minister of Foreign Affairs.
D. o. No. 204 volume no. 405 date: November 3, 2014 SV/adar 21-11-2014 legislative index