Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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DECREE Nº 162
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 General Law Municipal Tax, the general principles are established for the the municipalities exercise their own initiative of law, thus preparing their tax rate and proposing it to be considered by this State Authority.
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 Arbitrios of the Municipality of Nahulingo, Department of Sonsonate, issued by Legislative Decree No. 869, dated November 21, 1952 published in Official Journal No. 233, Volume No. 157 dated December 9, 1952 and its reforms, contain taxes that no longer respond to the current needs of the Municipality, so it is appropriate to modify the said tariff.
IV. It is in the interests of the Municipality of Nahulingo, Department of Sonsonate, to decree a new law that updates the tax rate in force, in order to obtain a better collection from the application of said Law, for the benefit of its citizens thus contributing to local development.
BY TANT,
in use of their faculties On the initiative of the Deputy Cesar Humberto Garcia Aguilera and the Municipal Council of Nahulingo, Department of Sonsonate.
DECREES THE PRESENT TAX LAW TO THE ECONOMIC ACTIVITY OF THE MUNICIPALITY OF NAHULINGO, DEL SONSONATE DEPARTMENT
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 Articles 1 and 2 of the General 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, the taxes demanded by the Municipalities, without any individual consideration.
Active Subject of Tax Obligation
Art. 4.-The municipality of Nahulingo 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.-They shall be taxable persons of the municipal tax obligation, the natural or legal person who carries out any gainful economic activity in the Municipality and who according to this Law is obliged to comply with the financial benefits is as a taxpayer or liable.
For the purposes of the application of this Law are also considered taxable persons the communities of assets, successions, trusts, societies of fact and other collective entities or assets that still where, under the common law, they are not legal personality, the quality of the rights and obligations.
They are also considered taxable persons under this Law, the Autonomous Institutions, including the Executive Hydroelectric Commission of the Lempa River (CEL) and the Autonomous Port Executive Commission (CEPA) as long as they perform industrial, commercial, financial and service activities in the Municipality, with the exception of social security institutions.
Contributor
Art. 6.-A taxpayer is understood to be the taxable person for which the operative event for the tax liability is verified.
Responsible
Art. 7.-It is understood as responsible, that who without being a taxpayer by express mandate of the Law must fulfill the obligations of this.
Municipal Tax Period
Art. 8. For the purposes of payment of the established taxes, 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
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those activities that your period is classified 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, according to the following classification:
ACTIVITY
AGRICULTURAL SECTOR Agriculture Livestock Other activities
MINING AND QUARRYING Extraction of non-metallic and metallic minerals
MANUFACTURING industries Food products, except beverages and tobacco beverages Textiles, garments and leather Wood, cork and paper industries Manufacture of chemical substances Manufacture of products Non-metallic minerals Manufacture of metallic mineral products Manufacture of machinery, apparatus, accessories and supplies Manufacture of transport equipment Other articles
ELECTRICITY, GAS AND WATER Light and electrical power Gas Production Water Supply
BUILDING Construction
TRADE Wholesale and Retail Trade
ACTIVITY
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HOTELS, RESTAURANTS AND THE LIKE Hotels and similar Restaurants and the like
TRANSPORT, STORAGE AND COMMUNICATIONS Transport and related services Storage Storage
FINANCIAL ESTABLISHMENTS, INSURANCE AND REAL ESTATE Financial activities and services Financial intermediation auxiliaries Real estate
SERVICES Services primarily focused on companies Other services
ACTIVITIES NOT WELL SPECIFIED PUBLIC ADMINISTRATION, AGENCIES GOVERNMENT AND FOREIGN INSTITUTIONS Public administration Non-governmental bodies Foreign institutions
In the case of holders of establishments holding their parent in a given municipality and branches, offices or agencies or any kind of taxable assets in others; for the application of Taxes on the parent, the amounts applied by the municipalities of the purchases in which the agencies or branches operate or any type of taxable asset must be deducted, provided that the tax base is the same for
The economic activities shall constitute acts that generate the tax when they are generated directly in the Municipality, however, the respective acts, conventions or contracts have been perfected outside the the.
From the Imposable Base
Art. 10.-For the purposes of this Law, the taxable asset shall be those assets held by a natural or legal person for the development of its specific economic activity.
The taxable asset shall be determined by deducting from the total assets, those assets taxed in other municipalities, securities guaranteed by the State, depreciation of the fixed assets and legal deductions to employees that at the time of filing the respective balance sheet have not been settled.
Financial companies will also have the right to deduct amounts accounted for for the formation of reserves for the consolidation of loans, in accordance with the provisions of the Superintendence of the Financial System, the corresponding legal assemblage and the amount of the goods that they administer as a trust.
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Companies that are engaged in two or more activities determined in this Law will pay for taxable assets the corresponding tax for each of these activities.
CHAPTER II OF THE TAXES ON ECONOMIC ACTIVITIES
Variable taxes and fixed taxes
Art.11.- For the payment of the respective taxes, there will be variable tax and fixed tax.
Art.12.-Economic activities with fixed tax and variable tax are taxed, according to the following table, based on the taxable asset obtained pursuant to Art. 10 of this Act.
ECONOMIC ACTIVITIES TAX APPLICATION TABLE DEVELOPED IN THE MUNICIPALITY
IF THE TAXABLE ASSET IS: MONTHLY TAX:
Up To $500.00 They will pay a fixed fee of $1.50
From $500.01 to $1,000.00 $1.50 plus $3.00 per thousand or fraction surplus $500.00
From $1,000.01 to $2,000.00 $3.00 plus $3.00 per thousand or surplus fraction from $1,000.00
From $2, 000.01 to $3,000.00 $6.00 plus $3.00 per thousand or surplus fraction from $2,000.00
From $3,000.01 to $ 6,000.00 $9.00 plus $2.00 per thousand or surplus fraction of $3,000.00
From $6,000.01 to $18,000.00 $15.00 plus $2.00 per thousand or fraction, surplus to $6,000.00
From $18,000.01 to $30,000.00 $39.00 plus $2.00 per thousand or fraction, surplus to $18,000.00
From $30,000.01 to $60,000.00 $63.00 plus $1.00 per thousand or fraction, surplus to $30,000.00
$ 60,000.01 to $100,000.00 $93.00 plus $0.80 per thousand or fraction, surplus to $60,000.00
From $100,000.01 to $200,000.00 $125.00 plus $0.70 per thousand or fraction, surplus to $100,000.00
From $200,000.01 to $300,000.00 $195.00 plus $0.60 per millar or fraction, surplus to $200,000.00
From $300,000.01 to $400,000.00 $255.00 plus $0.45 per thousand or fraction, surplus to $300,000.00
From $400,000.01 to $500,000.00 $300.00 plus $0.40 per thousand or fraction, surplus to $400,000.00
From $500,000.01 to $1,000,000.00 $340.00 plus $0.30 per thousand or fraction, surplus to $500,000.00
From $1,000,000.01 onwards.
$490.00 plus $0.18 per thousand or fraction, surplus to $1,000,000.00
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Liquor Factories
Art. 13.-The liquor and spirits factories, shall not pay any additional tax to the one that corresponds to the sale of their products to the majority, however they will be obliged to pay the tax for the sales rooms or agencies that they have established in jurisdiction.
TITLE III OF THE MUNICIPAL TAX ADMINISTRATION, RESPONSIBILITIES OF
OFFICIALS AND TAXPAYER OBLIGATIONS
CHAPTER I POWERS AND DUTIES OF THE TAX ADMINISTRATION MUNICIPAL
Control Faculties
Art. 14.-The municipal tax administration by its officials and appointed employees or delegates for that purpose shall have the powers of control, inspection, verification and investigation of taxpayers or responsible persons in order to ensure that 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. 15.-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.
CHAPTER II RESPONSIBILITIES OF OFFICIALS
Solvency
Art. 16.-The Registrar of the Root and Mortgage Property of the Republic shall not register any instrument in which the transfer or charge of the property appears, any title that may be, if there is no proof of solvency of taxes
a)provisions of Article 4 (1) of Regulation (EC) No No 1 of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament Trade in the solvency of municipal taxes in society.
CHAPTER III FORMAL TAXPAYER OBLIGATIONS
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Information Duty
Art. 17.-Every owner or legal representative of commercial, industrial or any other activity 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 previous paragraph, the taxpayer has an obligation to pay the tax. Warning Duty
Art. 18. -Any natural or legal person subject to the payment of municipal taxes, must give notice to the Municipal Mayor, of the closing, transfer, change of direction and of any other fact that has as a consequence the cessation or variation of said tribute, within 30 days of the fact that it is being treated. 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. 19.-Taxpayers subject to taxation on the basis of the taxable amount shall submit to the Mayor's Office the affidavit or the balance sheets corresponding to each fiscal year, as established by the Trade Code no later than two months after the date of Article 8 of this Law shall be terminated in accordance with Article 8 of this Law. Failure to submit within the stipulated period of the affidavit or balance sheets shall cause the taxpayer to pay a fine equivalent to 1% of the asset, estimated by the Municipal Tax Administration.
CHAPTER IV SOLVENCY MUNICIPAL
Municipal Solvency
Art. 20.-Every natural or legal person has the right to request for any process its corresponding municipal solvency, which shall be issued in a simple paper free of all municipal taxes, extended with the formalities expressed in the Art. 101 of the Municipal Code.
The solvency may be extended, however, any appeal or challenge may be pending of resolution, by means granted by the interested party equal to the amount owed plus a third part of it.
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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. 21.-The forms of extinction of the municipal tax obligation, are:
a) Payment;
b) Compensation; and,
c) The Extinct Prescription.
CHAPTER II OF THE PAGO
Payment Definition
Art. 22.-Payment is the fulfillment of the due tribute and has to be effected by the taxpayers or the responsible.
This may be in legal tender or payment in currency, in order to comply with the due tribute. When payment is made, the City Council's authorization will be required.
From which the Tax Payment can be made
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 on the creditor's rights.
Deadline to Make Payment
Art. 24.-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 Arts 33 and 83 of the Municipal Tax Law and Art. 89 of the Municipal Code.
Forms of Payment and Other Related Activities
Art. 25.-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 established in the Arts. 35 et seq. of the General Tax Law Municipal.
COMPENSATION CHAPTER III
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Compensation Operation
Art. 26.-When this municipality and a taxpayer of the same, are each other's debtors, it may operate between them, a compensation that extinguishing both debts up to the limit of the least 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. 27.-The prescription that extinguishes the actions or rights, requires only a certain period of time during which the actions have not been exercised.
Prescription of the Law of the Municipalities to Demand the Payment of Tax
Art. 28.-The right of the Municipalities to demand the payment of the municipal taxes and accessories, will be prescribed for lack of initiative in the executive judicial collection during the term of 15 consecutive years.
Computer of the Deadline to Disrupt Prescription and its Effects
Art. 29.-With respect to the calculation of the term, the interruption of the prescription and the effects of the prescription will be in the provisions of Arts 43 and 44 of the General Tax Law and Art. 2257 of the Civil Code.
CHAPTER V OF THE MORA AND OTHER REGULATIONS
Effect of the Mora
Art. 30.-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 60 days to elapse without verifying that payment; these unpaid taxes on the conditions set out 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. 31.-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. 32.-For tax violations, the following sanctions are laid down:
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 it is sourced.
CHAPTER II OF VIOLATIONS
Contraventions to the Corresponding Declare and Sanctions Obligation
Art. 33.-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 may never be less than ¢ 25.00. If the taxpayer is unable to contribute the applicable fine will be ¢ 25.00 or its equivalent in U.S. dollars.
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 ¢ 25.00. If the taxpayer is unable to contribute, the fine to be applied is ¢ 25.00 or its equivalent in the United States of America.
3º Present extemporaneously tax returns.
The penalty corresponding to 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, until the day in which it was filed, not being able to be less than ¢ 25.00. If you do not pay tax, the fine will be ¢ 10.00 or its equivalent in dollars from the United States of America.
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Contentions to the Required Pay and Sanctions Obligation
Art. 34.-They are in violation of the obligation to pay the municipal taxes, to omit the payment or to pay out of the established 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 ¢ 25.00 or its equivalent in dollars of the United States of America.
Deductions from the Obligation to Allow Control by the Municipal Tax Administration and Corresponding Sanctions
Art. 35.-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 ¢ 50.00 or higher than ¢ 10,000.00 or its equivalent 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. 36.-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 one indicated in the first paragraph of the previous article.
Contracts to Other Tax Obligations and Applicable Sanctions
Art. 37.-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 ¢ 50.00 to ¢ 500.00, or its equivalent in dollars of the United States of America, according to the gravity of the case and the economic capacity of the offender.
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CHAPTER III MUNICIPAL TAX CRIME
Art. 38.-Municipal tax crimes constitute conduct that is punishable and sanctioned as such in the Criminal Code or in special laws.
Municipal Tax Administration Act Regarding Tax Crimes
Art. 39.-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. 40.-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. 41.-The Municipal Mayor or the official authorized for this purpose has jurisdiction to hear about violations and the corresponding penalties provided for in this Law.
Appeal and Procedure Resource
Art. 42.-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. 43.-For the taxes paid to the Municipality of Nahulingo, a surcharge of 5% will be made for the celebration of the Civic and Patron Fiestas of the municipality.
Art. 44.-What is not foreseen in this Law will be subject to what is available in the Municipal Tax Law, in whatever case.
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Art. 45.-Defeat all those Laws or Provisions that would be contrary to this Law.
Art. 46.-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-two days of October of the year two thousand nine.
CIRO CRUZ ZEPEDA PENA, PRESIDENT.
OTHON SIGFRIDO REYES MORALES, ALBERTO ARMANDO ROMERO RODRIGUEZ, VICE-PRESIDENT. VICE PRESIDENT.
JOSÉ FRANCISCO MERINO LÓPEZ, RODOLFO ANTONIO PARKER SOTO, VICE-PRESIDENT. VICE PRESIDENT.
LORENA GUADALUPE PEÑA MENDOZA, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SECRETARY. SECRETARY.
ELIZARDO GONZÁLEZ LOVO, SANDRA MARLENE SALGADO GARCIA, SECRETARY. SECRETARIAT.
FRANCISCO ROBERTO LORENZANA DURAN, ROBERTO JOSÉ D' AUBUISSON MUNGUÍA, SECRETARY. SECRETARY.
CASA PRESIDENTIAL: San Salvador, on the sixteen days of November of the year two thousand nine.
PUBESCOSE,
Carlos Mauricio Funes Cartagena, President of the Republic.
Humberto Centeno Najarro, Minister of Governance.
D. O. No 223 Took No 385 Date: 27 November 2009.
CM/adar 20/01/2010
