Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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DECREE NO 65
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
WHEREAS:
I. That in the provisions of Articles 133 (4), 203 (1) and 204 (6) of the Constitution of the Republic and Art. 2 of the General Tax Law, the general principles or principles for which the municipalities exercise their Bill, drafting new proposals and presenting them as bills to the Legislative Assembly.
II. According to the Municipal Tax Law, municipal taxes must be based on the economic capacity of the taxpayers and on the principles of generality, equality, equitable distribution of the tax burden, and not confiscation.
III. That the General Tariff of Municipal Arbitration, issued by Legislative Decree No. 502, dated November 16, 1995 published in Official Journal No. 236, Volume No. 329 of December 20, 1995 and its reforms, contain taxes that no longer respond to the current needs of the municipality.
IV. That it is appropriate to the interests of the Municipality of San Ildefonso, Department of San Vicente, to decree a new Municipal Tax Law to replace the current tax rate, in order to obtain a better collection from the application of the law, for the benefit of its citizens, thus contributing to local development.
BY TANTO,
in use of its constitutional powers and at the initiative of the Municipal Council of San Ildefonso, Department of San Vicente.
TAX LAW FOR THE ECONOMIC ACTIVITY OF THE SAN ILDEFONSO MUNICIPALITY OF THE DEPARTMENT OF SAN VICENTE. (1)
TITLE I GENERAL PROVISIONS
ONLY CHAPTER
Object of Law
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 accordance with Article 204 of the Constitution 1 and 6 of the Constitution. of the Republic and Art. 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 the situation is to facilitate the application of this same law. Municipal Taxes
Art. 3.-These are municipal taxes, the taxes demanded by the municipalities, without any individual consideration.
Active subject of the tax obligation
Art. 4.-The municipality of San Ildefonso will 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.-The taxable persons shall be liable for 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.
ARE ALSO CONSIDERED TAXABLE PERSONS PURSUANT TO THIS LAW, THE AUTONOMOUS INSTITUTIONS, INCLUDING THE EXECUTIVE COMMISSION OF THE LEMPA RIVER (CEL) AS LONG AS THEY CARRY OUT ACTIVITIES INDUSTRIAL, COMMERCIAL, FINANCIAL AND SERVICES IN THE MUNICIPALITY, WITH THE EXCEPTION OF SOCIAL SECURITY INSTITUTIONS (1)
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, the one who without being a taxpayer by express mandate of the Law must fulfill the obligations of this one.
Municipal tax period
Art. 8.-For the purposes of payment of the established taxes, the period shall be understood to start
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on January 1 and ends on December 30 and December 1, except for those activities that your period is classified as special and determined by law.
TITLE II OF THE TAX OBLIGATION
CHAPTER I OF THE FACT GENERATOR AND TAXABLE BASE
Made Generator
Art . 9.-It is established as a operative event, all economic activity carried out in the Municipality, according to the following classification:
ACTIVITY AGRICULTURAL SECTOR Agriculture Livestock Other agricultural activities
MINING AND QUARRYING Extraction of non-metallic and metallic minerals
MANUFACTURING INDUSTRIES Food products, except beverages Beverage and tobacco Textiles, garments and leather Wood industries, cork Manufacture of chemical substances Manufacture of mineral products 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
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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
ESTABLISHMENTS FINANCIAL, INSURANCE AND REAL ESTATE Financial activities and Ancillary services of financial intermediation Insurance 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 in others; for the application of the corresponding taxes to the parent, the amounts applied by the municipalities of the understandings in which the agencies or branches operate provided that the tax base is the same for those and for those purposes.
The economic activities will constitute tax-generating facts when they are generated directly in the Municipality, however the respective acts, conventions, or contracts have been perfected outside of it.
From the tax 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
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of the Superintendence of the Financial System, the corresponding legal lace and the amount of the assets that they administer as trust.
Companies that are engaged in two or more activities determined in this Law will pay for the taxable assets the corresponding tax for each of these activities.
CHAPTER II 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 in accordance with Art. 10 of this Law. ECONOMIC ACTIVITIES TAX APPLICATION TABLE DEVELOPED IN THE MUNICIPALITY IF THE TAXABLE ASSET IS: MONTHLY TAX:
Up to $500.00 Pay a fixed rate of $1.50
From $500.01 to $1,000.00 $1.50 plus $3.00 per millar or surplus fraction of $500.00
From $1,000.01 to $2,000.00 $3.00 plus $3.00 per thousand or surplus fraction of $1,000.00
From $2, 000.01 to $3,000.00 $6.00 plus $3.00 per thousand or surplus fraction of $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
$ 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
From $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 thousand or fraction, surplus to $200,000.00
$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
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From $1,000,000.01 onwards. $490.00 plus $0.18 per thousand or fraction, surplus to $1,000,000.00
Spirits 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. Sanction
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 provide 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 of the company.
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CHAPTER III FORMAL TAXPAYER OBLIGATIONS
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, 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 payment of the same, unless they have been covered by the acquirer, in cases of transfer.
The Mayor's Office is entitled to close ex officio accounts when It is true 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. Affidavit
Art. 19.-Taxpayers subject to taxation on the basis of the taxable amount shall submit to the Mayor's Office a sworn statement or the balance sheets for each financial year as established by the Trade Code, not later than two months after the end of the year. This exercise. The non-filing within the stipulated time of the affidavit or balance sheets, will make the taxpayer incur a fine equivalent to 10% of the asset, estimated by the Municipal Tax Administration.
CHAPTER IV SOLVENCY MUNICIPAL
Municipal Solvency
Art. 20.-Every taxpayer has the right to request for any process its corresponding municipal solvency, which will be issued in a simple paper free of all municipal taxes, extended with the formalities expressed in the Municipal Code.
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The solvency may be extended, however, any appeal or challenge may be pending, by means of caution given by the person concerned equal to the amount owed more than one third of it.
TITLE IV OF THE FORMS OF EXTINCTION OF THE TAX OBLIGATION
MUNICIPAL AND DELINQUENT
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
Definition of Payment
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. Where payment is made, the authorization of the Municipal Council shall be required. From which tax payments 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 the 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 Tax Administration and in accordance with the provisions of the Arts. 33 and 83 of the General Law Municipal Tax.
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.
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CHAPTER III OF COMPENSATION
Operation of Compensation
Art 26.-When this Municipality and a taxpayer of it, are each other's reciprocal debtors, it may operate between them, a compensation that extinguishing both debts up to the limit of the minor in the cases and with the requirements provided for in Articles 40 and 41 of the General Tax Law.
CHAPTER IV OF THE EXTINGUISHING OR RELEASING PRESCRIPTION
Prescription that extinguishes 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 right of the Municipalities to demand the payment of tax
Art. 28.-The right of the Municipalities 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. 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 DEFAULT AND OTHER REGULATIONS
Effect of the default
Art. 30.-The taxable person shall be deemed to be a member of the MRA in the payment of taxes, where he shall not carry out the duties, and no longer than 60 days shall elapse without verifying that payment; these unpaid taxes shall be paid 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.
From undue or excess payment
Art. 31.-If a taxpayer pays an amount unduly or in excess, it shall be entitled to
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that the municipality does the balance back in your favor or that it is paid is to future tax debts.
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 obligation to declare and corresponding penalties
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 of the end of the period for
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present the statement, until the day I present, 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 of the United States of America.
Contractual obligations to pay and corresponding penalties
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 from the United States of America.
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.
Contraventions to the obligation to report and related sanctions
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 applicable tax obligations and penalties
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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.
CHAPTER III DELITO MUNICIPAL TAX
Art. 38.-Municipal tax crimes constitute the conduct that is classified and sanctioned as such in the Criminal Code or in special laws.
Municipal Tax Administration Act on 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 shall 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 competence to know of violations and the corresponding sanctions regulated in this Law.
Appeal and procedure
Art. 42.-From the determination of the taxes and the application of penalties made by the Municipal Tax Administration, an appeal of appeal will be admitted before the MUNICIPAL COUNCIL, 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
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Final Provisions
Art. 43.-For the taxes paid to the Municipality of San Ildefonso will be made a surcharge of 5% that will serve for the celebration of the Civic and Patron Fiestas of said 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.
Art. 45.-Defeat all those Laws or Provisions that would be contrary to this Law.
Art. 46.-This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, on the nine days of July of the year two thousand nine.
CYRUS 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, at the thirty days of the month of July of the year two thousand nine.
PUBESQUIESE, Carlos Mauricio Funes Cartagena,
President of the Republic. Humberto Centeno Najarro, Minister of Government.
D. O. No. 149 Took No. 384 Date: August 14, 2009.
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REFORM:
(1) D.L. No. 130, SEPTEMBER 24, 2009; D.O. NO 193, T. 385, OCTOBER 16, 2009.
CGC/adar 5-9-2009 CGC 19 /Oct/09
