ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________

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DECREE NO 727

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That by means of Legislative Decree No. 266 dated February 4, 2010, published in Official Journal No. 37, Volume No. 386, of the 23rd of the same month and year, the Law of Municipal Taxes was issued to the Activity Economic of the Municipality of Chinameca, Department of San Miguel.

II.-That in the provisions of Art. 204 number 6 of the Constitution of the Republic and Art. 2 of the General Tax Law, it establishes the general principles or principles for the Municipalities to exercise their own initiative of Law, in order to elaborate and propose their Law of Municipal Taxes to the Legislative Assembly.

III.-That in the current wording of the Law cited above, no operative event is established and a specific tax base in respect of the economic activities by generation of electric power; as is the case, of other Municipalities developing a specific regulation for such economic activities, which They are uniform in all the municipalities that hold passive electric power generators.

IV.-That is convenient to the interests of the Municipality of Chinameca, Department of San Miguel, to reform the Law of Municipal Taxes in its Article 14, in order to obtain a better collection from the application of this Law, for the benefit of its citizens thus contributing to local development.

BY TANTO,

in use of the Constitutional and initiative faculties of the Municipal Council of Chinameca, Department of San Miguel and the Deputy Edgar Escolan Batse.

DECCRETA, the following:

Reform of the Municipal Tax Law to the Economic Activity of the Municipality of Chinameca, Department of San Miguel, approved by Legislative Decree No. 266 dated February 4, 2010, published in Official Journal No 37, Volume N ° 386, of the 23rd of the same month and year.

Art. 1.-Reform of Art. 14, as follows:

" Art. 14.-The electricity generating companies within the Municipality, will pay in tax, a fixed rate of ten thousand dollars from the United States of America ($10,000.00), plus twenty-five cents of the United States of America America ($0.25) per megawatt hour produced injected into the electrical system to which they are incorporated, either transmission or distribution. For the verification of the megawatts/hour, the Municipality shall be provided with the power generating company a monthly report of the Unit of Transactions S. A. of C. V. known

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