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DECEMBER No. 624

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF THE SALVADOR,

CONSIDERING:

I.- That in articles 133 numeral 4, 203 subparagraphs 1 and 204 numeral 6 of the Constitution of the Republic and Art. 2 of the Municipal General Tax Law, the general principles are established for municipalities to carry out their bill, thus preparing their tax rate and proposing it for consideration by this State Body.

II.- In accordance with the Municipal Tax General Law, municipal taxes must be based on the economic capacity of taxpayers and on the principles of generality, equality, equitable distribution of tax burden and non-requisition.

III.- That the Rate of Arbitrios of the Municipality of Jicalapa and its current reforms contain taxes that no longer meet the current needs of the municipality, so it is convenient to modify that rate.

IV.- That it is convenient to the interests of the Municipality of Jicalapa, Department of La Libertad, to decree a new Law that updates the current tax rate, in order to obtain a better collection from the application of that Law, for the benefit of its citizens thus contributing to local development.

TANTO,

in the use of its constitutional powers and at the initiative of the Municipal Council of Jicalapa, Department of La Libertad and the Deputy Eduardo Enrique Barrientos Zepeda.

RIGHT:

THE SUBMISSION OF IMPESTS TO THE ECONOMIC ACTIVITY OF JICALAPA MUNICIPIO, OF THE DEPARTMENT OF LIBERTY

PART I. GENERAL PROVISIONS

UNICO CHAPTER

Object of the Law

Art. 1.- The purpose of this Law is to establish the normative framework as well as the legal procedures required by the Municipality to exercise and develop its tax authority in municipal taxes, in accordance with Article 204 of the Constitution of the Republic and Art. 1 and 2 of the General Tax Law.

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Schools of the Municipal Council

Art. 2.- In order to better comply with this Law, all applicable legal provisions shall be observed, and the Municipal Council shall also be authorized to issue the supplementary regulations necessary to clarify any unforeseen situation, provided that the purpose of these provisions is to facilitate the application of this same Law.

Municipal taxes

Art. 3.- They are municipal taxes, the taxes demanded by the municipalities, without any individualized counterfeiting.

Active Subject of Tax Obligation

Art. 4.- He will be an active subject of the municipal tax obligation, the Municipality of Jicalapa, as a creditor of the respective taxes.

Passive Subject of Tax Obligation

Art. 5.- They shall be passive subjects of the municipal tax obligation, the natural or legal person who performs any profitable economic activity in the municipality and that according to this Law is obliged to comply with the pecuniary benefits as a contributor or responsible.

For the purposes of the application of this Law, communities of property, inheritance, trustees, de facto societies and other collective entities or assets are also considered passive subjects, even if they are not legally entitled to the quality of subjects of rights and obligations under common law.

They are also considered passive subjects in accordance with this Law, the Autonomous Institutions, including the Hydroelectric Executive Commission of the River Lempa (CEL) and the Autonomous Port Executive Commission (ECA) provided that they undertake industrial, commercial, financial and service activities in the municipality, with the exception of social security institutions.

Contribution

Art. 6.- It is understood by taxpayer, the passive subject in respect of which the tax obligation is verified.

Responsible

Art. 7.- It is understood to be responsible, who without being a contributor to the express mandate of the Act must comply with the obligations of the Act.

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Municipal Tax Period

Art. 8.- For the purposes of payment of the established taxes, it will be understood that the tax period or fiscal year begins on January one and ends on December thirty-one, except for those activities that your period is classified as special and determined by Law.

TITLE II OF THE TRIBUTARY OBLIGATION

CHAPTER I OF THE GENERATOR AND THE IMPONIBLE BASE

Made Generator

Art. 9. It is established as a generator fact, any economic activity that takes place in the municipality, according to the following classification:

ACTIVITY

AGROPULARY SECTOR Agriculture livestock Other agricultural activities

EXPLOTATION OF MINAS AND CANTERAS Extraction of non-metallic and metallic minerals

INDUSTRIES MANUFACTURERAS Food products, except beverages Drinks and tobacco Textiles, clothing and leather Wood, cork and paper industries Manufacture of non-metallic mineral products Manufacture of metallic mineral products Manufacture of machinery, apparatus, accessories and supplies Manufacture of transport equipment Other manufactures

ELECTRICITY, GAS AND WATER Electricity and power Gas production Water supply

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CONSTRUCTION Construction

TRADE wholesale and retail trade

HOTELS, RESTAURANTS AND SIMILARES Hotels and similar Restaurants and similar

TRANSPORT, AMENDMENT AND COMMUNICATIONS Transport and related services Storage

FINANCIAL ESTABLISHMENTS, FOLLOW-UP AND Financial activities and auxiliary services of financial intermediation Insurance Real estate

SERVICES Services focused primarily on companies Other services

NON-GOVERNMENTAL ACTIVITIES AND FOREIGN INSTITUTIONS Public administration Non-governmental institutions

In the case of holders of establishments that have their matrix based in a particular municipality and branches, offices or agencies or any type of gravable asset in others; for the application of taxes corresponding to the matrix, the amounts applied by the municipalities of the understandings in which the agencies or branches operate or any type of gravable asset shall be deducted, provided that the taxable base for the same and the taxable base for the same.

Economic activities shall constitute tax-generating facts when they are generated directly in the municipality, although the respective acts, conventions or contracts have been perfected outside it.

From the Imponible Base

Art. 10.- For the purposes of this Law, the assets that a natural or legal person possesses for the development of his or her specific economic activity will be regarded as an enforceable asset.

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The taxable asset shall be determined by deducting from the total asset, assets encumbered in other municipalities, securities guaranteed by the State, depreciation of the fixed asset and legal retentions to employees who at the time of submitting the respective balance have not been liquidated.

Financial companies shall also have the right to deduct the amounts recorded for the formation of reserves for loan sanitation, in accordance with the provisions emanating from the Superintendency of the Financial System, the corresponding legal lace and the amount of assets they administer as trustees.

Companies that devote themselves to two or more activities specified in this Law, shall pay for the taxable assets the corresponding tax for each such activity.

CHAPTER II OF IMPESTS TO ECONOMIC ACTIVITIES

Taxes Variable and Taxes

Art.11.- For the payment of the respective taxes, there will be variable tax and fixed tax.

Art.12.- Economic activities are taxed with fixed tax and variable tax, according to the table below, based on the taxable assets obtained under Art. 10 of this Law.

TABLA OF IMPLEMENTATION OF IMPESTS TO ECONOMIC ACTIVITIES UNDER THE MUNICIPIO

IMPONIBLE ACTIVE IS: MENSUAL IMPEST:

Up to $500.00 will pay a fixed fee of $1.50

From $500.01 to $1,000.00 $1.50 plus $3.00 per million or over $500.00 fraction

From $1,000.01 to $2,000.00 $3.00 plus $3.00 per thousand or excess fraction of $1,000.00

From $2,000.01 to $3,000.00 plus $3.00 per thousand or excess fraction of $2,000.00

From $3,000.01 to $6,000.00 $9.00 plus $2.00 per thousand or excess fraction of $3,000.00

From $6,000.01 to $ 18,000.00 $15.00 plus $2.00 per mill or fraction, over $6,000.00

From $18,000.01 to $30,000.00 $39.00 plus $2.00 per mill or fraction, over $18,000.00

From $30,000.01 to $60,000.00 $63.00 plus $1.00 per mill or fraction, over $30,000.00

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From $60,000.01 to $100,000.00 $93.00 plus $0.80 per thousand or fraction, over $60,000.00

$100,000.01 to $200,000.00 $125.00 plus $0.70 per mill or fraction, over $100,000.00

From $200,000.01 to $300,000.00 $195.00 plus $0.60 per thousand or fraction, over $200,000.00

From $300,000.01 to $400,000.00 $255.00 plus $0.45 per thousand or fraction, exceeding $300,000.00

From $400,000.01 to $500,000.00 $300.00 plus $0.40 per thousand or fraction, over $400,000.00

From $500,000.01 to $1,000,000.00 $340.00 plus $0.30 per mill or fraction, over $500,000.00

$1,000,000.01 forward. $490.00 plus $0.18 per mill or fraction, over $1,000,000.00

Licores factories

Art. 13.- The liquor and aguardian factories will not pay any additional tax to which it is responsible for the sale of their products to the wholesale, however they will be obliged to pay the tax for the sale rooms or agencies that have established in the jurisdiction.

PART III

OF MUNICIPAL TRIBUTARY ADMINISTRATION, RESPONSIBILITIES OF FUNCTIONERS AND OBLIGATIONS OF CONTRIBUTIONS

CHAPTER I FACULTADES AND DEBERS OF THE TRIBUTARIA MUNICIPAL ADMINISTRATION

Control faculty

Art. 14.- The municipal tax administration shall, through its officials and employees appointed or delegates for this purpose, have the powers of control, inspection, verification and investigation of taxpayers or officials in order to ensure that they comply with the obligations set forth in this Law in accordance with the procedures set out in Articles 82 and 89 of the Municipal Tax General Law. Any information supplied shall be strictly confidential.

Sanction

Art. 15.- Taxpayers or officials referred to in the previous article, who refuse to allow and facilitate inspections, examinations, checks and investigations or to provide

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explanations, data and reports or deliberately providing false or inaccurate data shall be punished in accordance with the provisions of Article 66 of the General Tax Law.

CHAPTER II RESPONSIBILITIES OF FUNCTIONERS

Solvency Requirability

Art. 16.- The Registrars of the Raíz and Hipotecas Property of the Republic shall not register any instrument in which the transfer or tax on property appears, in any title, if there is no record of the solvency of municipal taxes on the root good subject of the transfer or tax.

Nor will the writings of constitution, modification and dissolution of commercial companies be registered in the Trade Register, without being presented to the Trade Registrars to record the solvency of municipal taxes of the society.

CHAPTER III FORMAL CONTRIBUTING OBLIGATIONS

Information Duty

Art. 17.- Any owner or legal representative of commercial, industrial or other business establishments is obliged to give written notice to the Municipal Office on the date of the opening of the establishment or activity in question no later than thirty days after the opening date, for the purposes of its qualification.

Failure to comply with the requirement set out in the preceding subparagraph will result in the owner or representative being accepted by the date on which the staff member performed the corresponding qualification.

Determined the date, in accordance with the preceding subparagraph, the taxpayer is obliged to make payment of the established tax.

Without prejudice to the evidence that may be provided on the contrary, either in the qualification process or in its challenge to the appeal.

Duty of Notice

Art. 18.- Any natural or legal person subject to the payment of municipal taxes shall give notice to the municipal mayor ' s office, of the closure, transfer, change of direction and of any other act which results in the cessation or variation of such a tribute, within thirty days of the fact that it is concerned. Failure to comply with this obligation shall hold the subject responsible for the payment tax, unless they have been covered by the acquiring party, in cases of transfer.

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The Municipal Council is empowered to close ex officio accounts when it is contended that a natural or legal person has ceased to be subject to payment under this Law. Such closure shall be made from the date determined by the Municipal Council, in accordance with Art. 90 ordinal 7° of the General Tax Law Municipal.

Juda Declaration

Art. 19.- The taxpayers subject to imposition on the basis of the taxable asset shall submit to the mayor's office affidavit or balance sheets for each fiscal year, as provided by the Trade Code no later than two months after the end of the exercise in accordance with Art. 8 of this Law. The non-submission within the stipulated time limit of the affidavit or balance sheet shall incur the taxpayer in a fine equal to 1 per cent of the undeclared asset, as ex officio estimated by the Municipal Tax Administration.

CHAPTER IV MUNICIPAL SOLVENCE

Municipal Solvency

Art. 20.- Any natural or legal person has the right to apply for any procedure for his or her corresponding municipal solvency, which will be issued in simple paper free of any municipal tribute, extended with the formalities expressed in Art. 101 of the Municipal Code.

Any appeal or challenge is pending, however, by means of a caption granted by the person concerned equal to the amount owed plus one third of it.

TITULE IV OF FORMS OF EXTINATION OF THE TRIBUTARY OBLIGATION

MUNICIPAL AND MORA

CHAPTER I FORMS OF TRIBUTARIAN EXTINATION

Art. 21.- The forms of extinction of the municipal tax obligation are:

(a) Payment;

(b) Compensation; and,

(c) Exemptive prescription.

CHAPTER II

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Definition of Payment

Art. 22.- Payment is the fulfillment of the due tribute and must be carried out by the taxpayers or those responsible.

This can be in currency of legal course or payment, in order to fulfill the due tribute. When made by payment, the authorization of the Municipal Council shall be required.

Of those who can make the payment of taxes

Art. 23.- Payment may be made by the taxpayer, by the legal representative or by a third party, in the latter case, there is legal subrogation of the third party in the rights of the creditor.

Time to Make Payment

Art. 24.- Payment shall be made effective no later than thirty days after the qualification of the fact that the tax obligation is generated, before the Municipal Treasury or through another mechanism established by the Municipal Council and in accordance with the provisions of the Arts. 33 and 83 of the General Tax Law Municipal and Art. 89 of the Municipal Code.

Forms of Payment and Other Related Activities

Art. 25.- With regard to the ways in which the payment will be made, the facilities of the payment, the expiration of the extraordinary period, the imputation and the overpayment will be set up in the Arts. 35 et seq. of the Municipal Tax General Law.

CHAPTER III OF COMPENSATION

Operation of Compensation

Art. 26.- When this municipality and a taxpayer are reciprocal debtors one of the other, it may operate among them, a compensation that extincts both debts to the limit of the minor in cases and with the requirements provided for in articles 40 and 41 of the Municipal Tax General Law.

CHAPTER IV OF THE EXTINTING PRESCRIPTION OR LIBERATORY

Prescription to Extingue Actions or Rights

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Art. 27.- The limitation that extinguishes actions or rights requires only a certain period of time during which such actions have not been exercised.

Prescription of the Law of Municipalities to Demand Tax Payment

Art. 28.- The right of municipalities to demand the payment of municipal taxes and accessories shall prescribe for lack of initiative in the executive judicial collection for the period of 15 consecutive years.

Completion of the Term to interrupt Prescription and its Effects

Art. 29.- With regard to the computation of the term, the interruption of the statute of limitations and the effects of the statute of limitations shall be subject to the provisions of the Arts. 43 and 44 of the General Tax Law Municipal and Art. 2257 of the Civil Code.

CHAPTER V OF THE MORA AND OTHER REGULATIONS

Effect of the Mora

Art. 30.- It will be understood that the passive subject falls in arrears in the payment of taxes, when he does not make the same and will leave to spend a period of more than sixty days without verifying that payment; these taxes not paid under the conditions specified in this provision will cause a mortifying interest to the date of their cancellation equivalent to the market interest for the debts incurred by the commercial sector from the day after the conclusion of the regular payment period.

Interests will be paid together with the tribute without need of resolution or requirement. Accordingly, the obligation to pay such payment shall still remain where it has not been required by the collector, bank, financial or any other institution authorized to receive such payment.

Indebted or Excess Payment

Art. 31.- If a taxpayer pays an unduly or excessive amount, he or she shall have the right of the municipality to return the balance in his or her favour or to pay it to future tax debts, in accordance with the Arts. 120, 121 and 122 of the General Taxation Act.

PART V CLASS OF SANTIONS, CONTRAVENTIONS, PROCEDURES AND

RESOURCES

CHAPTER I OF SANTIONS

Sanctions classes

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Art. 32.- For tax violations, the following penalties are established:

(a) Fine;

(b) Seizure of species that have been the object or means of committing the violation or violation; and

(c) Closure of the establishment, when appropriate.

CHAPTER II

Contraventions to the Obligation to Declare and Correspondent Sanctions

Art. 33.- Contraventions to the obligation to file taxes with the municipal tax administration are set up:

1 omit the tax return.

The corresponding penalty is a fine equivalent to 5% of the undeclared tax and may never be less than ¢25.00. If the taxpayer is unable to pay the applicable fine will be ¢ 25.00 or its equivalent in United States dollars.

2° Present false or incomplete statements.

The corresponding penalty is a fine of 20% of the omitted tax and may never be less than ¢25.00. If the taxpayer is unencumbered, the fine to be applied is ¢ 25.00 or its equivalent in United States dollars.

3° Extemporaneously present tax returns.

The corresponding penalty shall be 2 per cent of the tax declared outside the time limit for each month or fraction of the month, which has elapsed from the date of completion of the deadline for submission of the declaration, until the day of submission, not being able to be less than ¢ 25.00. If it is not taxed, the fine will be ¢10.00 or its equivalent in United States dollars.

Contraventions to the Obligation of Pay and Correspondent Sanctions

Art. 34.- They set up contraventions to the obligation to pay municipal taxes, omit payment or pay out of established deadlines. The corresponding penalty shall be a fine of 5 per cent of the tax, if it is paid in the first three months of arrears; and if it pays in the later months, the fine shall be 10 per cent. In both cases the minimum fine shall be ¢ 25.00 or its equivalent in United States dollars

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United States of America.

Contraventions to the Obligation to Allow Control by the Municipal Tax Administration and Correspondent Sanctions

Art. 35.- They set up contraventions regarding the obligation to allow control by the municipal tax administration:

1 To refuse, oppose or not to allow control by the municipal tax administration. The corresponding penalty is 0.50% of the declared asset and will never be less than ¢ 50.00 or more than ¢ 10.000.00 or its equivalent in United States dollars. If, despite the application of such a fine, the taxpayer persists in refusal or opposition, the penalty will be the closure of the establishment, which will be lifted immediately to allow control.

2nd Hide or destroy backgrounds, whether assets, documents or other evidence. The applicable penalty shall be equal to that of the previous paragraph, without prejudice to the criminal action to which it takes place.

Contraventions to Information Obligation and Correspondent Sanctions

Art. 36.- Contraventions to reporting are set up:

1 Refrain to provide the information requested by the municipal tax administration on facts that the passive subject is obliged to know about his own activities or third parties.

2° To omit the information or notices to the municipal tax administration that the corresponding legal or administrative provisions order.

3° Provide the municipal tax administration with false or incomplete reports. In the cases mentioned above, the applicable fine shall be equal to the one specified in the first paragraph of the preceding article.

Contraventions to Other Tax Obligations and Applicable Sanctions

Art. 37.- Contraventions involving taxpayers, those responsible or third parties for violations of the tax obligations provided for in this Act, laws or ordinances establishing municipal taxes and their regulations, which are not defined in the preceding articles, shall be fined from ¢ 50.00 to ¢ 500.00, or their equivalent in United States dollars, depending on the seriousness of the case and the economic capacity of the offender.

CHAPTER III OF THE MUNICIPAL TRIBUTARY

Art. 38.- Municipal tax offences constitute conduct that is defined and punished as such in the Criminal Code or in special laws.

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Acts of the Municipal Tax Administration on Tax Offences

Art. 39.- Without prejudice to the sanctioning of acts constituting municipal tax contraventions, if these same facts and others in the opinion of the municipal tax administration, presume the existence of a tax offence, for which the Municipal Public Treasury is injured. Such administration shall conduct relevant administrative investigations to ensure the collection and preservation of evidence and the identification of participants in such crimes.

Exercise of Criminal Action

Art. 40.- If, in the opinion of the municipal tax administration, a tax offence has been committed that affects the Municipal Public Treasury, it shall provide the information obtained, if any, and in any case, it shall request the Attorney General of the Republic to initiate the appropriate criminal proceedings before the competent court, without prejudice to the Municipal Council's particular name of the accused for the same purpose.

Competent Officer

Art. 41.- The municipal mayor or the official authorized for this purpose has a disrespect for dealing with contraventions and the corresponding penalties regulated by this Law, in accordance with the procedure established in Art. 109 et seq. of the General Tax Law.

Appeal and Procedure

Art. 42.- An appeal shall be granted to the Municipal Council, which shall be brought before the competent official within three days of his notification in accordance with the cases and procedures established by Article 123 et seq. of the Municipal Tax General Act.

PART VI

Final Provisions

Art. 43.- For taxes paid to the Municipality of Jicalapa, a surcharge of 5% will be made for the celebration of the Civic and Patronal Festivals of the municipality.

Art. 44.- What is not provided for in this Law shall be subject to what is provided for in the Municipal Tax General Act, as appropriate.

Art. 45.- This Decree shall enter into force eight days after its publication in the Official Gazette.

DADO en EL SALON AZUL DEL PALACIO LEGISLATIVE: San Salvador, on the twenty days of February of the year two thousand fourteen.

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OTHON SIGFRIDO MORALES, PRESIDENT.

ENRIQUE ALBERTO LUIS VALDES SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICEPRESIDENT. SECOND VICEPRESIDENT.

JOSE FRANCISCO MERINO LOPEZ, FRANCISCO ROBERTO LORENZANA DURAN, TERCER VICEPRESIDENT. VICEPRESIDENT FOURTH.

CARLOS ARMANDO REYES RAMOS, QUINTO VICEPRESIDENT.

LORENA GUADALUPE PEÑA MENDOZA, MANUEL VICENTE MENJIVAR ESQUIVEL, FIRST SECRETARIAT. SECOND SECRETARY.

SANDRA MARLENE SALGADO GARCIA, JOSE RAFAEL MACHUCA ZELAYA, TERCERA SECRETARIA. SECRETARY FOURTH.

IRMA LOURDES PALACIOS VASQUEZ, ERNESTO ANGULO MILLA, QUINTA SECRETARIA. SECRETARY SIX.

FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN ORANTES RODRIGUEZ, SEPTIMO SECRETARIO. OCTAVO SECRETARY.

Presidential House: San Salvador, on the fourteenth day of March of the year two thousand fourteen.

PUBLIQUESE,

Carlos Mauricio Funes Cartagena, President of the Republic.

Gregorio Ernesto Zelayandía Cisneros, Minister of Governance.

D. O. No. 54 Volume No. 402 Date: March 20, 2014

FN/geg 22-04-2014

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