Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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DECREE Nº 206.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That in Articles 133 numeral 4, 203 (1) and 204 (6) of the Constitution of the Republic and Article 2 of the Municipal Tax General Law, the general principles for that the municipalities exercise their own initiative of law, thus preparing their tax rate and proposing it to consideration of this State Organ.
II.-That according to the Municipal Tax Law, the municipal taxes will have to be based on the economic capacity of the taxpayers and on the principles of generality, equality, equitable distribution of the tax burden and non-confiscation.
III.-That the General Tariff of the Arbitrios of the Municipality of San Marcos, Department of San Salvador, issued by Legislative Decree No. 1213, dated October 29 of 1953 published in Official Journal No. 209, Tomo 161 dated November 18, 1953 and its reforms, contain taxes that no longer respond to the current conditions of the municipality, so it is appropriate to modify the said tariff.
IV. That it is appropriate to the interests of the Municipality of San Marcos, Department of San Salvador, to decree a new law that updates the current tax rate, in order to obtain a better collection from the application of this Law, for benefit of their citizens thus contributing to local development.
BY TANTO,
in use of their Constitutional powers and at the initiative of the Municipal Council of San Marcos, Department of San Salvador.
DECREES THE PRESENT TAX LAW TO THE ECONOMIC ACTIVITY OF THE MUNICIPALITY OF SAN MARCOS, DEPARTMENT OF SAN SALVADOR.
TITLE I GENERAL PROVISIONS
ONLY Act Object
Art. 1. This Law is intended to establish the regulatory framework as well as the legal procedures required by the Municipality to exercise and develop its tax authority in the field of municipal taxes, in accordance with Article 204 1 and 6 of the Constitution of the Republic and Article 1 and 2 of the Municipal Tax Law.
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Municipal Council Faculties
Art. 2.-For the best compliance with this Law, all those legal provisions that are applicable must be observed, with the Municipal Council having the power to issue the additional regulations that are applicable. necessary to clarify any unanticipated situation, provided that the purpose of these is to facilitate the application of this same Law.
Municipal Taxes
Art. 3.-They are municipal taxes, taxes demanded by the municipality, without any individual consideration.
Active Subject of Tax Obligation
Art. 4.-The municipality of San Marcos shall be the active subject of the municipal tax obligation in its character as a creditor of the respective taxes.
Liabilities to the Tax Obligation
Art. 5.-It shall be a taxable person of the municipal tax obligation established under this law, the natural or legal person who carries out any gainful economic activity and which according to this Law is obliged to comply with the pecuniary benefits are as a taxpayer or liable.
For the purposes of the application of this Law are also considered taxable persons the communities of property, successions, trusts, societies of fact and other collective entities or (a) the Community's legal status, even if it does not have legal personality, attributes the quality of rights and obligations subjects.
They are also considered taxable persons under this Law, the Autonomous Institutions, including the Executive Hydroelectric Commission of the Lempa River (CEL) and the Executive Committee Autonomous Port (CEPA).
Contributor
Art. 6.-It is understood by taxpayer, the taxable person with respect to which the operative event of the tax obligation is verified.
The natural and legal persons who temporarily or partially perform an economic turn of trade, are understood to be included in this article.
Responsible
Art. 7.-It is understood as responsible, the one who without being a taxpayer by express mandate of the Law must fulfill the obligations of this one.
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Municipal Tax Period
Art. 8. For the purposes of payment of the taxes established, the tax period or fiscal year shall be understood to start on one January and end on 30 and one December, with the exception of those activities which are classified as as special and determined by law.
TITLE II OF THE TAX OBLIGATION
CHAPTER I OF THE OPERATIVE EVENT AND THE TAX BASE
Made Generator
Art. 9.-It is established as a operative event, any economic activity that takes place in the municipality no matter that the respective acts, conventions or contracts that generate it has been perfected outside of it; the one that is generated in the municipality, or the purpose or essential part of which is or is to be provided in the latter; as well as the possession of assets within the municipality, of which economic benefits are obtained.
ACTIVITIES
Art. 10.-The following are understood as economic activity:
AGRICULTURAL SECTOR-AGRICULTURAL ACTIVITIES: It is all agricultural, bovine, porcine, apiary and avian production, which leads to raw products, semi-processed products and processed, including the following:
C Agriculture. C Livestock. C Aamić. C Apiculture. C Cuniculture. C Breeding of other species of animals for trade. C Ordinary hunting and by traps, restocking of game animals. C Forestry, timber extraction and related services. C Fish Culture.
INDUSTRIAL SECTOR-Industrial activities: Activities to be devoted to the extraction or production of raw materials or to the transfer of raw materials into semi-finished or finished products, including production craft. For example:
C Extraction non-metallic and metallic minerals. C Manufacturing industries. C Drinks and tobaccos. C Textiles, garments and leather. C Industry of wood, cork and paper.
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C Manufacturing of chemicals. C Manufacture of non-metallic mineral products. C Manufacture of metallic mineral products. C Manufacture of machinery, apparatus, electronic components, accessories and supplies. C Manufacture of transport equipment. C Generation and distribution of electricity, gas and water. C Construction.
COMMERCIAL SECTOR-BUSINESS ACTIVITIES: Those engaged in the purchase and sale of goods, and all types of movable and immovable property. Including among others:
C Commerce of wholesale and retail merchandise. C Storage and warehousing, excludes general warehouse warehouses. C Services in telecommunications, mail, shipping, telephony and telegraphy, television services
includes cable television, broadcasting and data transmission. C Assets and roots.
SERVICE SECTOR-SERVICE ACTIVITIES: Are all onerous activities and operations that provide professional, technical and logistical services that do not consist of the production or transaction of goods and goods. Which involves the following activities:
C Professional services. C Repairs and installations. C Rentals. C Services primarily focused on businesses.
FINANCIAL SECTOR-FINANCIAL ACTIVITIES: These are the activities of the institutions of the National and Foreign Financial System, the stock exchange and securities, persons natural or legal entities, which are dedicated to the collection of funds for savings, investment and credit, currency exchange, insurance, insurance, montepios and pawn houses. Understanding that includes the following entities:
C Banks. C Institutions of savings and credit. C Savings and credit cooperatives. C Financial entities engaged in the transfer of funds and
credit and debitservice. C Purchase of portfolio and financial investment. C Houses of change. C Bags, stock exchanges and stock brokers. C Capitalization companies. C Fiduciaries. C Insurers in general. C Insurance brokers.
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C Pension Fund Administrators.
PUBLIC SECTOR-ACTIVITIES NOT SPECIFIED WELL PUBLIC ADMINISTRATION, NON-GOVERNMENTAL AGENCIES AND FOREIGN INSTITUTIONS
C Public administration. C Non-governmental organizations. C Foreign institutions. C ADESCOS.
OTHERS NOT CONTEMPLATED:
Those economic activities contemplated by the Central Reserve Bank, in government accounting, and in the classification of economic activities of the Ministry of Finance.
CHAPTER II OF ECONOMIC ACTIVITIES TAXES
From Imposable Base
Art. 11. For the purposes of this Law, the value of the assets held by a natural or legal person for the development of their specific economic activity, minus the deductibles established in the law, shall be deemed to be the value of the asset.
Tax will also be deducted from all assets taxed in other municipalities.
In the Form of Establishing the Tax Cuantia
Art. 12.-The monthly tax rates will be established by a fixed fee and a variable that will be applied according to the tax base, according to the following:
a) Assets from $500.01 dollars to $3,000.00 dollars for a fee fixed $1.50 plus four per thousand.
b) Assets from $3,000.01 to $100,000.00 for a fixed rate of $6.00 plus 2.75 per thousand.
c) Assets from $100,000.01 will be priced according to the following table:
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TAXABLE RATE
From $100,000.01 to $200,000.00 $281.00 plus $0.70 per thousand or fraction of thousand that exceeds $100,000.00
From $200,000.01 to $300,000.00 $285.00 plus $0.60 for each thousand or fraction of thousand that exceeds from $200,000.00
From $300,000.01 to $400,000.00 $290.00 plus $0.45 per each thousand or fraction of millar exceeding $300,000.00
From $400,000.01 to $500,000.00 $300.00 plus $0.40 for each thousand or fraction of thousand that exceeds $400,000.00
From $500,000.01 to $1,000,000.00 $340.00 plus $0.30 for each thousand or fraction of a thousand that exceeds $500,000.00
From $1,000,000.01 onwards. $490.00 plus $0.18 per thousand or fraction of millar exceeding $1,000,000.00
MUNICIPAL TAX ADMINISTRATION TITLE III, RESPONSIBILITIES OF
TAXPAYER OFFICIALS AND OBLIGATIONS
CHAPTER I POWERS AND DUTIES OF THE MUNICIPAL TAX ADMINISTRATION
Control Faculties
Art. 13.-The municipal tax administration by its officials and appointed employees or delegates for that purpose shall have the powers of audit, control, inspection, verification and investigation of taxpayers or responsible persons at the end of the that some and others comply with the obligations laid down in this law in accordance with the procedures laid down in Articles 82 and 89 of the General Tax Law. All information provided will be strictly confidential.
Santion
Art. 14.-The contributors or persons responsible referred to in the previous article, who refuse to allow and facilitate inspections, examinations, checks and investigations or to provide explanations, data and reports or deliberately supply false or inaccurate data, will be sanctioned in accordance with the provisions of Article 66 of the General Tax Law.
Body of Auditors
Art. 15. To exercise the powers of oversight, the Municipal Administration will have a body of Fiscalizers.
The audit is the set of actions that the Municipal Tax Administration carries out for the purpose of establish the true tax situation of taxable persons, both those who have submitted their corresponding affidavit and those who have not.
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CHAPTER II FORMAL TAXPAYER OBLIGATIONS
Information Duty
Art. 16.-Every owner or legal representative of commercial, industrial or any other business is obliged to give written notice to the Municipal Mayor's Office, on the date of the opening of the establishment or activity of be treated no later than thirty days after the date of opening, for the purposes of its rating.
The failure to comply with the requirement set out in the preceding subparagraph shall result in the owner or representative having accepted the date on which the official in charge made the relevant rating.
Determined the date, in accordance with the preceding paragraph, the taxpayer has an obligation to pay the tax set.
Warning Duty
Art. 17.-Any natural or legal person subject to the payment of municipal taxes, shall give notice to the Municipal Mayor, of the closing, transfer, change of direction and of any other event that has as a consequence the cessation or variation of said In the case of the case, the following shall be added: Failure to comply with this obligation will hold the taxable person liable for the payment of the same, unless they have been covered by the acquirer, in cases of transfer.
The City Council has the power to close ex officio accounts where it is established that a natural or legal person has ceased to be a subject of payment under this Law. Such closure shall be made as of the date determined by the City Council.
Juried Declaration
Art. 18.-Taxpayers subject to taxation on the basis of taxable assets shall submit to the Municipal Tax Administration due and fully complete the information required in the respective Affidavit Form, last balance sheet for each fiscal year, as set out in the Code of Commerce no later than three months after the end of the financial year in accordance with Article 8 of this Law and all appropriate documentation supporting the permitted deductions in accordance with this Law.
All documentation supporting the deductions shall be comply with the formalities required by applicable national regulations, otherwise they will not be valid to be deductible.
Duty to allow the Fiscalization
Art. 19.-The taxable persons, persons responsible, third parties and/or employees, are obliged to provide to the Municipal Fiscalizers the means and conditions necessary to carry out the audits, inspections and verifications in any place, such as as: agricultural, commercial or industrial establishments, offices, warehouses, others.
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TITLE IV OF THE FORMS OF EXTINCTION OF THE TAX OBLIGATION MUNICIPAL AND DEFAULT
CHAPTER I FORMS OF TAX EXTINCTION
Art. 20.-The forms of extinction of the municipal tax obligation, are:
a) Payment; b) Compensation; and, c) Extinct prescription.
CHAPTER II OF THE PAGO
Payment Definition
Art. 21.-Payment is the fulfillment of the due tribute and has to be carried out by the contributors or the responsible.
This can be in legal tender, by issue of title value to the satisfaction of the municipality, in kind or payment, in order to comply with the tax due. When payment is made in kind or by payment, the authorization of the City Council will be required.
From which the Payment of Taxes can be made
Art. 22.-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 on the creditor's rights.
Deadline to Make Payment
Art. 23.-The payment must be made effective no later than thirty days after the operative event of the tax obligation, before the Municipal Treasury or through another mechanism established by the City Council and in accordance with the established in Articles 33 and 83 of the Municipal Tax Law and Article 89 of the Municipal Code.
Forms of Payment and Other Related Activities
Art. 24.-With respect to the ways in which the payment will be carried out, the facilities of this payment, the expiration of the extraordinary period, the imputation and the overpayment will be in accordance with the Articles 35 et seq. of the General Tax Law Municipal.
COMPENSATION CHAPTER III
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Compensation Operation
Art. 25.-When this municipality and a taxpayer of the same, are each other's debtors, may operate between them, a compensation that extinguishing both debts up to the limit of the child, in the cases and with the requirements laid down in the articles 40 and 41 of the Municipal Tax General Act.
CHAPTER IV OF THE EXTINGUISHING OR RELEASING PRESCRIPTION
Prescription to Extinct Actions or Rights
Art. 26.-The prescription that extinguishes the actions or rights, requires only a certain amount of time during which the actions are not exercised.
Prescription of the Law of the Municipality to Require the Payment of Taxes
Art. 27.-The right of the Municipality to demand the payment of municipal taxes and accessories, will be prescribed for lack of initiative in the executive judicial collection during the term of 15 consecutive years.
Prescription and its Effects
Art. 28.-With respect to the calculation of the term, the interruption of the prescription and the effects of the prescription will be within the provisions of Articles 43 and 44 of the General Tax Law and Article 2257 of the Civil Code.
CHAPTER V FROM THE DEFAULT AND OTHER REGULATIONS
Effect of the Mora
Art. 29.-The taxable person shall be deemed to be in arrears in the payment of taxes, where he shall not carry out the tax and leave a period of more than 30 days to elapse without verifying that payment; these unpaid taxes under the conditions laid down in that payment provision, shall cause a moratory interest until the date of its cancellation equivalent to the market interest for the debts incurred by the commercial sector from the day following the end of the ordinary period of payment.
interest shall be paid in conjunction with the tax without the need for resolution or requirement. Accordingly, the obligation to pay it shall remain in the case where it has not been required by the collector, bank, financial or any other institution authorized to receive such payment.
of the Indue Payment or on Excess
Art. 30.-If a taxpayer pays an amount unduly or excessively, he or she will have the right to have the municipality return the balance in his favor or to be paid in future tax debts.
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TITLE V SANCTIONS CLASSES, VIOLATIONS, PROCEDURES, AND RESOURCES
CHAPTER I OF THE SANTIONS
Sanctions Classes
Art. 31.-For tax violations, the following sanctions are established:
a) Multa; b) Comiso of species that have been the object or the means to commit the violation
or infraction; c) Closing of the establishment, when
CHAPTER II OF VIOLATIONS
Contraventions to the Corresponding Declare and Sanctions Obligation
Art. 32.-They set up contraventions to the obligation to declare taxes on the municipal tax administration:
1 omit the tax return.
The corresponding penalty is a fine equivalent to 5% of the tax. declared and will never be less than $2.86. If the taxpayer will result in no contributory capacity the applicable fine will be $2.86. Amounts expressed in U.S. dollars of the United States.
2nd Submit false or incomplete statements.
The corresponding penalty consists of a fine of 20% of the tax omitted and may never be less than $2.86. If the taxpayer will result in no contributory capacity, the fine to be applied to it is $2.86. Amounts expressed in U.S. dollars of the United States.
3rd Present extemporaneously tax returns.
The corresponding penalty shall be 2% of the tax declared outside the time limit for each month or fraction of the month, which has elapsed since the date on which the time limit for filing the declaration was concluded, up to the day it filed, not being less than $2.86. If the taxpayer will result in no contributory capacity, the fine to be applied to it is $1.14. Amounts expressed in U.S. dollars of the United States.
Contracts for the Obligation to Pay and Corresponding Penalties
Art. 33.-They are in violation of the obligation to pay the municipal taxes, the omitting
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the payment or pay out of the set deadlines. The corresponding penalty will be a fine of 5% of the tax, if it will be paid in the first three months of arrears; and if I will pay in the months after that, the fine will be 10%. In both cases the minimum fine will be $2.86, the amount expressed in dollars of the United States of America.
Deductions from the Obligation to Allow Control by the Municipal Tax Administration and Corresponding Sanctions
Art. 34.-They are in violation of the obligation to allow control by the municipal tax administration:
1. To refuse, to 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 $5.71 and above $1,142.86, amounts expressed in dollars of the United States of America. If however the application of that fine, the taxpayer persists in the refusal or opposition, the sanction will be the closure of the establishment, which will be lifted immediately that it agrees to allow the control.
2nd Hide or destroy background, whether goods, documents or other means of proof. The applicable penalty will be equal to that of the previous number, without prejudice to the criminal action to be taken.
Contracts for the Reporting and Sanctions Obligation
Art. 35.-They are in violation of the obligation to report:
1. To refuse to supply the information requested by the municipal tax administration, on facts that the taxable person is obliged to know, with respect to his own activities or third parties.
2nd Omit the information or notices to the municipal tax administration that the corresponding legal or administrative provisions order.
3º Provide to the municipal tax administration false or incomplete reports.
In the cases mentioned the applicable fine will be equal to the marked in the first in the previous article.
Other Tax Obligations and Applicable Sanctions
Art. 36.-The contraventions incurred by taxpayers, persons responsible or third parties for violations of the tax obligations provided for in this Law, laws or ordinances establishing municipal taxes and their regulations, which are not typified in the preceding articles, will be sanctioned with a fine of $5.71 to $57.14, amounts expressed in U.S. dollars of the United States, according to the severity of the case and the economic capacity of the offender.
CHAPTER III
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MUNICIPAL TAX OFFENSE
Art. 37.-Municipal tax crimes constitute conduct that is punishable and sanctioned as such in the Criminal Code or in special laws.
Municipal Tax Administration Acts Regarding Tax Crimes
Art. 38.-Without prejudice to the punishment of the facts that constitute municipal tax contraventions, if those same facts and others in the judgment of the municipal tax administration, make the existence of a tax offence presumed, for which the Municipal Public Finance will be harmed. Such administration will practice relevant administrative investigations to ensure the procurement and preservation of evidence and the identification of participants in such crimes.
Exercise of Criminal Action
Art. 39.-If the municipal tax administration has committed a tax offence affecting the Municipal Public Finance, it shall supply the information obtained, if any and in any event, request the Prosecutor General of the Republic initiating the criminal action corresponding to the competent court, without prejudice to the City Council's particular name for the same effects.
Competent Officer
Art. 40.-The municipal mayor or the official authorized for this purpose have jurisdiction to hear about violations and the corresponding penalties provided for in this Law.
Appeal and Procedure Resource
Art. 41.-From the determination of the taxes and the application of penalties made by the Municipal Tax Administration, an appeal for appeal to the Municipal Council will be admitted, which must be brought before the official who has made the
a)processing of the appeal specified in the preceding paragraph shall follow the rules which have been established in the Article; 123 and following of the Municipal Tax General Act.
TITLE VI CHAPTER I
Final Provisions
Art. 42.-What is not foreseen in this Law will be subject to what is available in the Municipal Tax Law, in whatever case.
Art. 43.-All the amounts expressed in this article have been established in United States dollars or its equivalent in colones.
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Art. 44.-Defeat all those Laws or Provisions that would be contrary to this Law.
Art. 45.-This Decree will 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 twenty-six days of the month of November of the year two thousand nine.
CIRO CRUZ ZEPEDA PENA, PRESIDENT.
OTHON SIGFRIDO REYES MORALES, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
JOSÉ FRANCISCO MERINO LÓPEZ, ALBERTO ARMANDO ROMERO RODRÍGUEZ, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.
FRANCISCO ROBERTO LORENZANA DURAN, FIFTH VICE PRESIDENT.
LORENA GUADALUPE PEÑA MENDOZA, CESAR HUMBERTO GARCIA AGUILERA, FIRST SECRETARY. SECOND SECRETARY.
ELIZARDO GONZÁLEZ LOVO, ROBERTO JOSÉ D' AUBUISSON MUNGUÍA, THIRD SECRETARY. FOURTH SECRETARY.
SANDRA MARLENE SALGADO GARCIA, IRMA LOURDES PALACIOS VÁSQUEZ, FIFTH SECRETARY. SIXTH SECRETARIAT.
MIGUEL ELIAS AHUES KARRA, SEVENTH SECRETARY.
CASA PRESIDENTIAL: San Salvador, at the twenty-two days of December of the year two thousand nine.
PUBESQUIESE,
CARLOS MAURICIO FUNES CARTAGENA, PRESIDENT OF THE REPUBLIC.
HUMBERTO CENTENO, MINISTER OF GOVERNMENT.
D. O. No. 241 Took No. 385 Date: December 23, 2009.
geg/ngcl 27-01-2010
