Reforming The Tax Code.

Original Language Title: REFÓRMASE EL CÓDIGO TRIBUTARIO.

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Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/reformase-el-codigo-tributario-2/archivo_documento_legislativo



1 Decree N ° 763 the Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that through Legislative Decree N ° 230, dated December 14, 2000, published in the official journal N ° 241, Tome N ° 349 of 22 of that same month and year, issued the tax code.
II.-that from the entry into force of this body of law, have been introduced reforms that have allowed, on the one hand, access to important advances in the control of compliance with tax obligations, and on the other, the administrative procedures for the determination of the tax debts are more efficient.
III.-that has been detected, that as a result of globalization and technological advances, have facilitated international trade operations, noting that this emerged new behaviors elusive and evasive, particularly with regard to transactions by electronic means, whose current tax controls are insufficient.
IV.-that through a series of queries made to the tax administration, it has been established that there is uncertainty about several aspects regulated in the code, such as the practical application of solvency, transfer, expiry and prescription prices, which makes necessary clarifications to the regulations applicable to such cases.
V-which also to simplify procedures that are not adapted to the reality, it is necessary to carry out adjustments to the attestor and audience figures.
VI.-that in this sense, it is necessary the introduction of reforms to the aforementioned code, allowing clarity in its content, facilitate its implementation and to establish effective and transparent tax controls.
Therefore, use of his constitutional powers and initiative of Deputy Othon Sigfrido Reyes Morales and the Deputy Lorraine Guadalupe Pena Mendoza.
DECREES the following: reforms to the code tax article 1.-reforming the heading of article 62-A and its second paragraph, in order, in the following manner: 2 "determination of transfer pricing" "taxpayer, for the purpose of the fulfilment of the obligation regulated in the previous paragraph, will determine the market price using the procedures and technical methods contained in this code and in guidelines on transfer pricing of the Organization for economic cooperation and development) OECD). The foregoing also applies to the tax administration, in the exercise of their powers, making where appropriate, the determination of appropriate market prices and the respective tax adjustments, according to regulated in this code."
Article 2.-added paragraphs fourth and fifth article 82, in the following manner: "The limitation period is suspended by filing appeal, process or action by the obligor or tax debtor in administrative or judicial bodies, until the judgment or the judgment has the authority of res judicata."
"Apply the grounds for interruption of the limitation period regulated in civil matters."
Article 3.-added seventh and eighth subparagraphs to article 120, in the following manner: "the tax administration can exchange tax information with tax administrations of foreign jurisdictions. For these purposes, you can sign agreements for the fulfilment of this purpose, which shall be subject to ratification, according to national legislation and subscription procedures."" "The provisions of this article constitutes a special regime, to be applied in preference to any laws or regulations, unless the reservation made expressly extended to the tax administration."
Article 4.-added to title III, in its chapter I, section tenth to be integrated with its heading, paragraphs and articles that are understood, in the following manner: "section DECIMA electronic equipment Control equipment, devices or systems computerized Art. 149-D-electronic equipment for the control of payments related to transfers of goods or provision of services, to be used in the Salvadoran territory" they must be entered on each ticket issued identification number authorized by the tax administration, in addition own ID or label assigned by the tax administration according to rules issued by this.
For purposes of this section, is understand the expression when using electronic equipment, which refers to equipment, apparatus or computerized or electronic systems such as terminal points of sales or POS for its acronym in English.

3. taxpayers may only use electronic equipment to control payments that comply with requirements referred to before, and that transmit information to subjects domiciled in El Salvador so that the liquidations and payments are carried out.
The tax administration will issue the necessary administrative rules in relation to this section.
Auditors who verify the existence or use of electronic equipment that fail to comply with the provisions of this article, in the development of any power delegated by the tax administration, rise up minutes stating such circumstance and shall withdraw the team immediately as a precautionary measure.
Taxpayers within a period of five days working and peremptory, counted from the day after the withdrawal of the team, may be brought their dissatisfaction with the General Directorate of internal revenue, providing in this period evidence deemed conducive, within such period shall be issued the resolution that corresponds, and must proceed in their case to their destruction.
Obligation for subjects negotiated equipment electronic Art. 149-E-banks, societies or associations cooperatives of savings and credit and their federations, as well as any subject, in any contractual form, to make available electronic equipment to be used in the control of payments in El Salvador, are obliged to: to) ensure that they comply with regulated in the first of the preceding article paragraph; and, b) report to the tax administration by electronic means with requirements and specifications is available, electronic computers in any contractual form is ready to be used by taxpayers in El Salvador. This report shall be forwarded for each quarterly period, within a period of fifteen working days of completed each quarter.
It empowers tax administration to publish through the website of the Ministry of finance or by any other means, list of authorized electronic equipment, users of the same and other relevant data for identification."
Article 5.-Article 167, be replaced by the following: "article 167.-in the notice of liquidation of profession, when the taxpayer has subverted in whole or in part the findings or illicit tax attributed by the tax administration shall apply the relevant provisions of article 165 of this code."
Also the Act of notification, shall contain all of the circumstances in which the aforementioned diligence was conducted. In the case of notification by note or edict will be expressed that he is added to the respective file copy of the notice or corresponding edict."

4 Article 6.-be inserted between the third and fourth subparagraphs of article 175, a subsection in the following way: "the computation of the period of revocation regulated in this provision, shall be interrupted from the date of notification of the appointment of Auditors auto up to three years."
Article 7.-reforming article 181, only the first part of the paragraph first, follows: "article 181.-the Attestor made visits to taxpayers as the acquirer of goods or provider of services, with the purpose of verifying compliance with the obligations to issue and deliver invoices or equivalent documents and if they satisfy the legal requirements, as well as the obligation to register in the register of taxpayers of the property transfer tax" and the provision of services, carrying the tax administration. "In the case of check breach of obligations concerned, shall identify their quality of Attestor to deliver the car that allows it to perform the check and raise the Act of checking for verified infringements, which must contain the following minimum requirements:" Art. 8-Add a final paragraph to article 219, in the following manner: "regulated in terms of solvency and authorization It is also applicable to the customs tax obligations."
Article 9.-replace the fifth subparagraph of article 260 and added a new subsection, in the following manner: "Without prejudice to the powers of control and determination of tax, completed the probationary term, will dictate the resolution that matches based on the evidence and applicable legal provisions."
"The check signed by the notary Act will send report of infringement, for the initiation of the procedure regulated in this article".
Article 10.-added a second paragraph to article 277, in the following manner:

"Competence regulated in the foregoing paragraph shall correspond to the Directorate General of internal revenue, which should be reporting annually, according to the administrative rules issued by this. The disclosure may be on the web site of the Ministry of finance in shorter period."
Article 11.-merge article 277-A, articles 277 and 278, in the following manner: "advertising resolutions for payment of taxes and fines article 277-A. The Directorate General of internal revenue reported extracts from resolutions of appraisal of taxes and fines, as well as statements issued by the Court of appeals for the internal revenue and customs and failures of the Chamber for contentious administrative on this matter. Same provisions shall apply in those cases where you give notice or be forwarded to the Office of the Attorney-General. These cases will include the names of taxpayers, the set value and the names 5 signatory officials.
The disclosure of the summary of notices, rulings and judgments shall be made annually in two newspapers of national circulation. The disclosure also may be on the web site of the Ministry of finance in one shorter period."
"Article 12.-added to Title VI, chapter I, article 280-B, in the following manner: Article 280-B.-the regulations contained in the fifth paragraph of article 82, are incorporated for the purpose of facilitating the implementation of standards and do not constitute new causes of interruption of the limitation period."
Article 13.-the transitional subjects which at the entry into force of this Decree possess or use electronic equipment that is the article 149-D, must be: to) comply with standards issued by the tax administration within the period of one hundred eighty days from the following day of its broadcast; and, b) report to the tax administration by electronic means with requirements and specifications is available, computers, appliances, electronic or computerized systems that possess or use, within the period of sixty days from the entry into force of this legislative decree.
The tax administration shall issue the administrative rules for the control of electronic equipment, within a period of sixty days from the entry into force of this Decree.
Repealing article 14.-repeal of the second paragraph of article 186.
Entry into force article 15.-the present 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, at thirty-one days of the month of July 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.

6 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.
FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN RODRIGUEZ ORANTES, SEVENTH SECRETARY. EIGHTH SECRETARY.
Presidential House: San Salvador, at thirty-one days of the month of July in the year two thousand fourteen.
PUBLISHED, Salvador Sanchez Ceren, President of the Republic.
Juan Ramon Carlos Enrique Caceres Chavez Minister of finance D. O. No. 142 volume no. 404 date: 31 July 2014 FN/pch 02-09-2014 legislative index