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.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________

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DECREE NO 832

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That by Legislative Decree No. 296 dated July 24, 1992, published in Official Journal No. 143, Volume No. 316 of 31 of the same month and year, the Law on the Transfer of Furniture and to the Transfer of Goods was issued Provision of Services.

II.-That Article 66 of that Act provides, that when transactions made in a tax period are in part taxed, partly exempt or partly not subject, the tax credit to be deducted from the tax debit, will be established based on a factor determined by the taxed transactions of the period divided by the (a) the tax credit of the tax period is applied to the tax credit.

III.-In accordance with the Vienna Convention on Diplomatic Relations, it is appropriate to recognise the application of the principles of reciprocity and more favourable nation, which govern in the field of relations

IV.-That in consideration of these principles, it becomes necessary to create, within the Law of Tax on the Transfer of Furniture and Services, the necessary mechanisms to benefit the diplomatic missions, consular missions, international organizations and their accredited members in El Salvador, who are constantly acquiring in the country for their personal use, mission or development of their projects to support the Salvadoran State, services from your local suppliers.

BY TANT,

in use of your faculties Constitutional and the initiative of the President of the Republic, through the Ministers of Finance and Foreign Relations.

DECCRETA: the following

REFORMS TO THE LAW OF TAX ON THE TRANSFER OF MOVABLE AND MOVABLE PROPERTY SERVICE DELIVERY

Art. 1.-Substitute in Art. 65, the second indent, by the following:

" The operations mentioned in the preceding numerals must be indispensable for the object, spin or activity of the taxpayer and for the generation of operations tax and therefore generate tax debit, of transactions taxed at zero percent, of donations of goods or services made to the institutions referred to in article 6 of the Tax Law

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on Income and on sales operations conducted in favor of diplomatic missions, consular, international organizations and their members accredited to the Government of the Republic of El Salvador; otherwise, the tax credit shall not be deductible. "

Art. 2.-Substitute in Art. 66, the sixth indent, by the following:

" If there are no tax credits attributable to transactions not subject to the payment of the tax and these are derived from non-habitual activities of the taxpayer, they will not be included such transactions in the calculation of proportionality. Nor shall it be included in the calculation of proportionality, operations consisting of donations of goods or services effected by the taxpayer in the terms provided for in the final points of Articles 11 and 16 of this Law, institutions referred to in Article 6 of the Income Tax Act, as well as the sales of goods and services by taxpayers to diplomatic missions, consular missions, international organizations, and its members accredited to the Government of the Republic of El Salvador, when they have been declared as exempt or not subject to the payment of the tax that regulates this Law, according to the respective international instruments signed and ratified by El Salvador. The foregoing, without prejudice to the fulfilment of other tax obligations that this Law or the Tax Code establishes in respect of non-taxable transactions. "

Art. 3.-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 thirty days of October of the year two thousand fourteen.

OTHON SIGFRIDO REYES MORALES, PRESIDENT.

ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

JOSÉ FRANCISCO MERINO LÓPEZ, LORENA GUADALUPE PEÑA MENDOZA, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.

CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, MANUEL VICENTE MENJÍVAR ESQUIVEL, FIRST SECRETARY. SECOND SECRETARY.

SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.

IRMA LOURDES PALACIOS VÁSQUEZ, ERNESTO ANTONIO ANGULO MILLA, FIFTH SECRETARY. SIXTH SECRETARY.

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FRANCISCO JOSÉ ZABLAH SAFIE, JOSÉ SERAFIN ORANTES RODRÍGUEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.

CASA PRESIDENTIAL: San Salvador, on the three days of the month of November of the year two thousand fourteen.

PUBESQUIESE,

Salvador Sánchez Cerén, President of the Republic.

Juan Ramón Carlos Enrique Cáceres Chávez, Hugo Roger Martinez Bonilla, Minister of Finance. Minister of Foreign Affairs.

D. O. No. 204 Took # 405 Date: November 3, 2014

SV/adar 21-11-2014

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