Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
1
___________________________________________________________________ LEGISLATIVE INDEX
DECREE Nº 86.
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That it is necessary to strengthen the municipal autonomy enshrined in the Constitution of the Republic, by means of the Municipalities, of those instruments that assure them a greater administrative and financial independence; in addition to allowing them to self-finance the services and works of socio-economic benefit for the population resident in them;
II.-That the municipal autonomy referred to its aspect The economic situation is largely based on the generation of income from the authority assigned to the Municipalities to establish taxes, and for this reason, the municipal tax systems and their administration must be the subject of attention. permanent to achieve its adaptation to the prevailing socio-economic conditions in our national reality;
III.-That in order to fulfill the constitutional mandate in the relevant to the special rates and contributions of the Municipalities, a law is required that establishes the general principles and norms, to which they will have the legal and administrative systems that must be issued by the Municipal Councils and other agencies and officials of the municipal tax administration;
IV. general rules for the application and administration of municipal taxes;
BY TANTO,
in use of its constitutional powers and at the initiative of Deputies Ricardo Alvarenga Valdivieso and Juan Ángel Ventura Valdivieso,
DECRETA the following:
MUNICIPAL TAX GENERAL LAW
TITLE I
SINGLE FUNDAMENTAL PROVISIONS
PURPOSE AND PREEMINENCE OF THIS LAW
Art. 1. This Law aims to establish the basic principles and the normative framework.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
2
___________________________________________________________________ LEGISLATIVE INDEX
general required by the Municipalities to exercise and develop their tax authority, in accordance with Article 204 ordinal 1 and 6 of the Constitution of the Republic.
This Law for its special character will prevail in matters of tax on the Municipal Code and other legal systems.
CONTENT OF LAWS AND AGREEMENTS ESTABLISHING MUNICIPAL TAXES
Art. 2. The laws and ordinances establishing municipal taxes shall determine in their contents: the event generating the tax; the active and the taxable persons; the amount of the tax or the way of establishing it; the deductions, the obligations of the persons assets, liabilities and third parties; the corresponding infringements and penalties; the resources to be granted under this General Law; as well as the exemptions that may be granted in respect of taxes.
must be based on the economic capacity of taxpayers and on the principles of generality, equality, equitable distribution of the tax burden and non-confiscation.
OF THE VARIOUS MUNICIPAL TAX CATEGORIES
Art. 3.-They are Municipal Taxes, the benefits, usually in money, that the Municipalities in the exercise of their tax authority, require the taxpayers or responsible, under a law or ordinance, for the fulfillment of their purposes.
These are Municipal Taxes: Taxes, Fees and Municipal Special Contributions.
MUNICIPAL TAXES
Art. 4.-They are Municipal Taxes, the taxes demanded by the Municipalities, without any individual consideration.
MUNICIPAL FEES
Art. 5.-These are Municipal Rates, the Taxes that are generated on the occasion of the public services of an administrative or legal nature provided by the Municipalities.
MUNICIPAL SPECIAL CONTRIBUTION
Art. 6.-Municipal Special Contribution is the tribute that is characterized because the taxpayer receives real or allegedly, a special benefit, derived from the execution of public works or determined activities, carried out by the Municipalities.
COMPETENT BODIES TO SET MUNICIPAL TAXES, FEES AND SPECIAL CONTRIBUTIONS
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
3
___________________________________________________________________ LEGISLATIVE INDEX
Art. 7.-Compete the Legislative Assembly, create, modify or repeal Municipal Taxes, on the proposal of the Municipal Councils, by issuing the corresponding legislative decree.
It is the competence of the Municipal Councils to create, modify or delete special fees and contributions, by issuing the ordinance, all by virtue of the faculty enshrined in the Constitution of the Republic, Article 204 numeral first and in accordance with this Law.
INTERPRETATIONS OF THE TAX RULE
Art. 8.-The rules of the municipal tax system shall be interpreted in accordance with the rules and methods accepted in law, taking into account the purposes of the rules and their economic significance.
The words used in that order They will understand their legal, technical, or usual sense, as appropriate, unless there is an express definition.
APPLICATION OF THE TAX RULE IN TIME
Art. 9. Laws establishing, modifying or abolishing municipal taxes shall enter into force eight days after their publication in the Official Journal, when they are of a permanent nature, being able to extend this period, but not to be restricted; Orders for the modification or deletion of municipal fees and contributions shall be required to enter into force, which have elapsed eight days after their publication. Some and others will be applied during the specified or indefinite period of time provided for in the respective law or ordinance.
APPLICATION OF THE TAX RULE IN SPACE
Art. 10.-The municipal tax rules shall apply in the territorial area of the Municipality in which the activities are carried out, the services are provided or the goods are located, the object of the municipal tax, whatever the the taxable person's domicile.
When the activities, services or goods, are developed, rendered, or are located in more than one municipal understanding, the applicable standard shall be:
1 The intended for such situations in Article 15 of this same Law regarding the operative event;
2nd The emerging conventions cooperative subscribed between two or more interested municipalities.
TITLE II
SUBSTANTIVE TAX OBLIGATION
CHAPTER I GENERAL PROVISIONS
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
4
___________________________________________________________________ LEGISLATIVE INDEX
MUNICIPAL TAX OBLIGATION
Art. 11.-The municipal tax obligation is the personal legal link between the Municipality and the taxpayers or those responsible for municipal taxes, according to which, they must satisfy a benefit in money, species or services can be appreciated in money, when verifying the operative event of the tax obligation, within the period determined by the law or ordinance that establishes it or, in its absence, in the stipulated in this Law.
They are also of a tax nature obligations of taxpayers, persons responsible and third parties, concerning the payment of interest or penalties, or formal duties.
OPERATIVE EVENT
Art. 12.-It is understood as a operative event or a taxable fact, the assumption provided in the law or the respective ordinance of creating municipal taxes, which, when it occurs in reality, gives rise to the tax obligation.
NORMAS DE INTERPRETATION OF THE OPERATIVE EVENT
Art. 13.-When the operative event consists of a legal act, it shall be interpreted according to its true essence and legal nature, whatever the form chosen or the denomination used by the interested parties.
When the operative event is (a) to take into account economic concepts, the criterion for interpreting it shall take account of economic situations or relationships which are actually in existence or are established by the parties concerned, irrespective of the legal forms
TIME WHEN THE GENERATOR EVENT IS PERFORMED
Art. 14.-The operative event is considered to be made from the moment when all the circumstances and constitutive elements provided for in the respective law or ordinance are produced, or at the time it is legally considered to be produced.
WHAT THE GENERATOR EVENT OCCURS
Art. 15.-The operative event is considered to occur:
a) In the place where the circumstances and constituent elements of it have been performed; and
b) Where the last of these has been performed, unless otherwise applicable legal provision to all municipalities.
IN THE CASE OF HOLDERS OF ESTABLISHMENTS THAT HAVE THEIR PARENT IN A GIVEN MUNICIPALITY, AGENCIES, BRANCHES, OFFICES OR ANY OTHER TYPE OF TAXABLE ASSET, ACCORDING TO THIS LAW AND OTHERS OF THE SUBJECT DEFINE,
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
5
___________________________________________________________________ LEGISLATIVE INDEX
WHICH THE HOLDER HAS IN OTHER MUNICIPALITIES WILL BE SUBJECT TO THE APPLICATION OF TAXES IN THESE MUNICIPALITIES. IN SUCH A CASE, FOR THE APPLICATION OF THE TAXES CORRESPONDING TO THE MATRIX, THE AMOUNTS APPLIED BY THE MUNICIPALITIES OF THE UNDERSTANDINGS IN WHICH THE AGENCIES, BRANCHES, OFFICES OR OTHER TAXABLE ASSETS OPERATE, SHALL BE DEDUCTED THIS LAW AND OTHERS OF THE MATTER SHALL DEFINE, PROVIDED THAT THE TAX BASE IS THE SAME FOR THAT AND FOR THE LATTER. (4)
The deduction will be made only of the affected taxes.
LEGAL ORDER GOVERNING THE TAX OBLIGATION
Art. 16.-The Municipal Tax Obligation is governed by the legal order in force at the time and in the Municipality in which its operative event occurs, except as prescribed in the literal b) of the previous article.
SUBJECT OF THE OBLIGATION MUNICIPAL TAX
Art. 17.-The active subject of the municipal tax obligation is the creditor municipality of the respective taxes.
TAXABLE PERSON OF THE MUNICIPAL TAX OBLIGATION
Art. 18.-The taxable person of the municipal tax obligation is the natural or legal person who according to the respective law or ordinance, is obliged to comply with the pecuniary benefits, either as a taxpayer or responsible.
they also consider taxable persons, the communities of property, succession, trusts, societies of fact or other collective entities or assets, which even if, under the common law, have no legal personality, in accordance with the rules Municipal taxes, they are attributed the quality of subjects of rights and obligations.
The State of El Salvador, its Autonomous Institutions including CEL and ANTEL, and the Foreign States will be subject to the charges for the municipal services they receive. Autonomous institutions that perform industrial, commercial or service activities, except for social security, will also be subject to municipal tax liabilities.
CONTRIBUTORS
Art. 19.-Contributor is the taxable person with respect to which the operative event of the tax obligation is verified.
The heirs to the universal title or curator of the deceased taxpayer's lying estate shall comply with the obligations or will exercise the rights of this one, up to the amount of the hereditary mass.
RESPONSIBLE
Art. 20.-Responsible for the tax obligation is that which, without being a contributor, by mandate
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
6
___________________________________________________________________ LEGISLATIVE INDEX
express law or the respective ordinance must meet the obligations of this.
OBLIGATIONS OF TAXABLE PERSONS
Art. 21. The obligation of the taxable persons consists in the payment of the taxes, in the fulfilment of all the tax obligations that correspond to them and of the formal duties referred to in this Law or in municipal provisions of character Tax.
The exemption from the duty on the payment of the tax does not free the taxpayer from the fulfilment of the formal duties.
Obligations and duties may be met by representatives or third parties duly authorized.
TAXPAYER SOLIDARITY OBLIGATIONS
Art. 22.-The taxpayers must be in solidarity in respect of which the same operative event is verified.
In the other cases, the solidarity must be expressly established by the law or the respective ordinance. In the cases of point 2 of Art. 18, solidarity is presumed.
RESPONSIBLE OBLIGATIONS OF THOSE RESPONSIBLE
Art. 23.-Legal and voluntary representatives who do not proceed with due diligence in their duties shall be jointly and severally liable for the tax obligations that correspond to their representation. This liability is limited to the value of the assets that they administer or have, unless they have acted with dolo.
CHAPTER II OF DOMICILE FOR MUNICIPAL TAX PURPOSES
ALLEGED TAX DOMICILE
Art. 24.-For municipal tax purposes, it is presumed that the taxable persons are entitled to the fact that the operative event of the respective tax obligation is carried out.
LOCATION DETERMINED FOR SITES, APPEARANCES AND NOTIFICATIONS
Art. 25.-Without prejudice to the provisions of Art. 93 of this Law, it shall be determined for the purposes of sites, appearances and notifications within the respective municipal understanding, which is recorded in the last action of the taxable person, or in default of the taxable person, that of his legal representative or proxy, or the person who has declared the taxable person for registration in any register of the Municipality, all in the order stated in this provision.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
7
___________________________________________________________________ LEGISLATIVE INDEX
The Municipality will require the taxable person to make such a determination; if it does not yet do so, it will apply the corresponding penalty.
CHAPTER III OF THE TAXABLE BASE
Art. 26.-The tax base of the municipal tax obligation is the dimension of the operative event that serves to quantify the tax, when applying the corresponding rate.
DETERMINATION OF THE TAX BASE
Art. 27.-The quantification of the tax base shall be made in the act of determining the tax liability. According to the tribute in question, this measurement will be done by the taxpayer or the respective municipality.
OF THE FARES
Art. 28.-Rates may be established in quotas given in percentages or in fixed quantities, which apply to the tax base; as a result of that operation, the amount of money payable to the taxable person in question is obtained compliance with your tax obligation.
ALIQUOTS CLASSES
Art. 29.-The aliquots are proportional or progressive. They are proportional when expressed in a constant percentage, independent of the amount of the tax base. They are progressive if expressed in percentages that increase in relation to the increases that the tax base has.
CHAPTER IV EXTINCTION OF THE TAX OBLIGATION
OF THE VARIOUS FORMS OF EXTINCTION
Art. 30.-The municipal tax obligation is extinguished according to one of the following forms:
1st Payment
2nd Compensation
3rd Prescription
OF THE PAGO
Art. 31.-Payment is the compliance of the due tribute and has to be effected by the taxpayers or the responsible.
OF THE THIRD THIRD PAYMENT
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
8
___________________________________________________________________ LEGISLATIVE INDEX
Art. 32.-When the payment is made by third parties outside the tax obligation, they shall be subrogated to the rights of the respective municipality in order to be able to claim what they have paid in respect of taxes, interest, surcharges or penalties, which
PLACE OF PAYMENT
ART MUST BE STATED ON THE RECEIPT OF THE PAYMENT. 33.-The payment shall be made to the corresponding Municipal Treasury, in accordance with the provisions of Art. 83 of this Law.
PAYMENT DATES
Art. 34.-In the laws or ordinances of creation of taxes, fees and special contributions, the deadlines or deadlines for the payment of the same shall be fixed. Where, in such laws or ordinances, no deadline or deadline for payment of the respective taxes is fixed, they must be cancelled within 60 days of the day on which the operative event of the tax obligation occurs.
taxes are established by the Municipality in the exercise of its tax authority, the payment shall be made within 60 days of the notification of the resolution in which the respective obligation is established.
FORM OF PAGO
Art. 35. The payment must be made in legal tender, which may be in cash or by certified cheque. Payment may be made with other means of payment in cases where it is expressly established, in accordance with the requirements of the respective law or ordinance, that the effect is issued.
PAYMENT FACILITIES
Art. 36.-Without prejudice to the provisions of Art. 34, the Municipalities may, by arrangement, grant facilities for the payment of the taxes caused, at the request of the taxpayer, who shall make it in writing.
During the course of the Payment facilities will be caused by the delinquent interests provided for in Art. 47 of this Law, and the executive action of recovery will be suspended.
EXPIRATION OF THE EXTRAORDINARY PAYMENT DEADLINE
Art. 37.-The extraordinary payment period referred to in the preceding Article shall lapse and make the insolute balance of the tax liability, including accrued interest, payable when the debtor has ceased to pay two consecutive instalments during the period of the IMPUTATION OF PAYMENT
ART. 38.-When the taxpayer has debts due to different taxes, he/she may make payments
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
9
___________________________________________________________________ LEGISLATIVE INDEX
partial with application to the debts that he determines. If I do not express what taxes such payments are to be charged, they will be applied starting with the oldest debt.
When for any cause I will pay an excess amount, you will be entitled to the return of the balance in your favor or to future tax debts.
COMPENSATION
Art. 39.-When a municipality and a taxpayer of the same one, are each other's debtors, it may operate between them, a compensation that extinguishes both debts up to the limit of the child, in the cases and according to the requirements laid down in the two following items.
COMPENSATION REQUIREMENTS
Art. 40.-The municipal tax administration of office or at the request of a party, may compensate in whole or in part the tax liability of the taxable person with the tax credit that it has in turn against the Municipality, provided that both the debt and the the credit is firm, liquid and enforceable.
COMPENSATION procedure
Art. 41.-Compensation shall be made as follows: the balance of overpaid taxes shall be applied by the municipal tax administration to the taxpayer's tax liability, beginning with the oldest charges.
The compensation shall be reported to the taxpayer.
In any case of compensation the respective Municipality shall issue the legitimate credit documents.
OF THE PRESCRIPTION
Art. 42.-The right of municipalities to demand payment of municipal taxes and their accessories, will be prescribed by the lack of initiative in the executive judicial collection during the term of fifteen consecutive years.
CALCULATION OF THE DEADLINE
Art. 43.-The term of the prescription shall begin to be computed from the day following the day of the end of the period for making the payment, either of the taxes caused or of the amount determined by the municipal tax administration.
PRESCRIPTION EFFECTS
Art. 44.-The prescription shall operate in full, without any need for it to be held by the taxable person, without prejudice to the latter being able to invoke it judicially at any time of the trial.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
10
___________________________________________________________________ LEGISLATIVE INDEX
CHAPTER V EFFECTS OF NON-COMPLIANCE WITH THE TAX OBLIGATION
Art. 45. The lack of payment of municipal taxes in the deadline or the corresponding deadline, places the taxable person in arrears, without the need for a requirement on the part of the municipal tax administration and without taking into consideration, the causes or reasons for that non-payment.
DEFAULT EFFECTS
Art. 46.-The default of the taxable person will produce, among others, the following effects:
1 Makes the tax liability payable
2nd Give rise to the accrual of moratorical interests
3º It gives rise to the application of fines, for setting up said arrears, a tax violation
Moratory interest shall be applied from the expiration of the period in which the tax was due until the day of the total extinction of the tax obligation; except that an action of appeal of the decision determining the municipal tax obligation, in which case the application of the interest from the date the appeal is filed to the one in which the appealed resolution is caused.
DELINQUENT INTERESTS
Art. 47. MUNICIPAL TAXES WHICH ARE NOT PAID IN THE CORRESPONDING PERIOD SHALL CAUSE A MORATORY INTEREST UNTIL THE DATE OF THEIR CANCELLATION EQUIVALENT TO THE MARKET INTEREST FOR THE DEBTS INCURRED BY THE COMMERCIAL SECTOR.
DEBT SHALL BE APPLIED TO THE TYPE OF MORATORICAL INTEREST THAT RIJA AT THE TIME OF THE PAYMENT OF THE TAX OBLIGATION, WHATEVER THE DATE ON WHICH THE OPERATIVE EVENT OCCURRED. IN NO CASE SHALL THIS MEASURE HAVE RETROACTIVE EFFECT.
FOR THE EFFECTS OF THE ABOVE, THE MUNICIPALITIES MAY REQUEST THE SALVADORAN MUNICIPAL DEVELOPMENT INSTITUTE, THE MORATORIO INTEREST RATE REPORT ESTABLISHED BY THE BANKS AND FINANCIALS. (2)
PRIVILEGE AND MUNICIPAL TAX CREDIT RATIO
Art. 48.-The appropriations for municipal taxes, their interest and financial penalties for tax infringements, enjoy special privileges on all the assets and income of the taxable person, and shall, even in the event of a contest, bankruptcy or liquidation, priority for payment of any other claims against them, with the exception of:
1. Food pensions due by law, wages and social security contributions whatever their date;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
11
___________________________________________________________________ LEGISLATIVE INDEX
2 The claims secured in real law in respect of the assets of the debtor affected by such guarantees, provided that they have been established prior to the determination of the tax liability, made by the taxpayer or by the municipal tax administration, as the case may be.
Municipal tax credits have the same order of ranking of state tax credits.
CHAPTER VI EXEMPTION FROM THE MUNICIPAL TAX OBLIGATION
EXEMPTION
Art. 49.-Tax exemption is the legal waiver of the substantive tax obligation or payment of the tax, established for reasons of public order, economic or social.
CONDITIONS AND REQUIREMENTS
Art. 50.-Only by express provision of the law of creation or modification of municipal taxes can be established tax exemptions. They shall specify the requirements for their recognition or grant to the beneficiaries of such exemptions, the taxes they comprise, whether total or partial, permanent or temporary.
EXEMPTION APPLICATION FIELD
Art. 51.-The exemption will include taxes that are established in the respective law and those that are in force by previous laws.
AUTHENTIC INTERPRETATION
DECREE N ° 963
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I. That by Legislative Decree No. 86, dated October 17, 1991, published in Official Journal No. 242, Tomo 313 dated December 21, 1991, the Municipal Tax Law was enacted.
II. The purpose of the law is to establish the basic principles and the general regulatory framework required by the municipalities to exercise and develop their tax authority in accordance with Article 202 of the Constitution of the European Union. Republic.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
12
___________________________________________________________________ LEGISLATIVE INDEX
III. That the wording of Art. 51 of the aforementioned Law has given rise to diversity of interpretations and applications by officials, in terms of the recognition of exemptions from municipal taxes contained in other laws prior to the enactment of the same.
IV. That Art. 131 number 5 ° of our Constitution grants the Legislative Assembly the power to authentically interpret secondary laws.
BY TANTO,
in use of its constitutional powers and on the initiative of Deputies Ciro Cruz Zepeda Peña, Jose Manuel Melgar Henriquez, Jose Francisco Merino Lopez, Jose Antonio Almendariz Rivas, Hector David Cordova Arteaga, Douglas Alejandro Alas Garcia, Elizardo Gonzalez Lovo, Rolando Alvarenga Argueta, Irma Segunda Amaya Echeverria, Luis Roberto Angulo Samayoa, Jose Orlando Arevalo Pineda, Jose Salvador Arias Penate, Saul Alfonso Monzon Molina, Efren Arnoldo Bernal Chevez, Roger Alberto Blandino Nerio, Noel Abilio Bonilla Bonilla, Blanca Flor America Bonilla Bonilla, Carlos Alfredo Castañeda Magana, José Ernesto Castellanos Campos, Roberto Eduardo Batlle Castle, Humberto Centeno Najarro, Luis Alberto Corvera Rivas, Jose Ricardo Cruz, Ernesto Antonio Duenas Azucena, Agustin Diaz Saravia, Roberto Jose dacería Aubuisson Munguía, Jorge Antonio Escobar Rosa, Guillermo Antonio Gallegos Navarrete, Vilma Celina Garcia de Monterrosa, Cesar Humberto Garcia Aguilera, Nicolas Antonio Garcia Alfaro, Ricardo Bladimir Gonzalez, Santos Fernando Gonzalez Gutierrez, Noe Orlando Gonzalez, Manuel de Jesus Gutierrez Gutierrez, Carlos Walter Guzman Coto, Mariela Pena Pinto, Gabino Ricardo Hernandez Alvarado, Mauricio Hernandez Perez, Jose Rafael Machuca Zelaya, Mario Marroquín Mejia, Alejandro Dagoberto Marroquín, Hugo Roger Martinez Bonilla, Manuel Vicente Menjivar Esquivel, Miguel Angel Navarrete Navarrete, Ruben Orellana Mendoza, Rodolfo Antonio Parker Soto, Renato Antonio Perez, Mario Antonio Ponce Lopez, Gaspar Armando Portillo Benitez, Francisco Antonio Prudencio, Zoila Beatriz Quijada Solis, Norman Noel Quijano González, José Mauricio Quinteros Cubias, Oscar Edgardo Mixco Sol, Carlos Armando Reyes Ramos, Dolores Alberto Rivas Echeverria, Ileana Argentina Rogel Cruz, Federico Guillermo Avila Quehl, Hector Ricardo Silva Arguello, Ernesto Antonio Angulo Milla, Enrique Alberto Luis Valdes Soto, Donato Eugenio Vaquerano Rivas, Maria Patricia Vasquez de Amaya, Jorge Alberto Villacorta Munoz, Immar Rolando Reyes, Gloria Mercedes Gonzalez de Rovira, Olga Elizabeth Ortiz, Felix Agreda Chachagua, Ana Enma Cornejo de Cañas, Blanca Nohemi Coto Estrada, Karina Ivette Sosa de Lara, Rigoberto Trinidad Aguilar, Enma Julia Fabian Hernandez, Guillermo Antonio Olivo Mendez, Salvador Rafael Morales, Blanca Estela Barahona, Jose Vidal Carrillo Delgado, Jesus Guillermo Perez Zarco, Marta Elena de Rodriguez, Oscar Abraham Kattan Milla, Sigfredo Antonio Campos Fernandez, Alba Teresa de Duenas, and Elias Romero Gomez.
DECRETA:
Art. 1.-The authentic interpretation of Art. 51 of Legislative Decree No. 86 dated 17 October 1991, published in Official Journal No. 242, Volume 313, dated 21 December 1991 in the sense, that the exemptions referred to in the
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
13
___________________________________________________________________ LEGISLATIVE INDEX
mentioned article, in turn, includes all municipal tax exemptions contained in either general or special laws previously enacted.
Art. 2. This authentic interpretation is incorporated in the text of the Legislative Decree mentioned above.
Art. 3.-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, at the fifteenth day of February of the year two thousand six.
D. O. No 49, Tomo Nº 370, Date: 10 March 2006.
TITLE III
MUNICIPAL TAX VIOLATIONS
CHAPTER I GENERALATIONS
CONCEPT OF VIOLATION
Art. 52.-It constitutes a tax violation any action or omission that involves violation of substantive or adjective tax rules, classified and sanctioned in this Law, in the Penal Code, in laws or ordinances of creation of municipal taxes or in special laws.
CLASSIFICATION OF MUNICIPAL TAX VIOLATIONS
Art. 53.-Municipal tax infractions may be:
1. Tax Violations; and
2nd Tax Crimes
Tax violations are administrative in nature and as such are sanctioned, and crimes tributaries are criminal in nature.
CHAPTER II MUNICIPAL TAX VIOLATIONS AND CORRESPONDING SANCTIONS
APPLICABLE LEGISLATION
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
14
___________________________________________________________________ LEGISLATIVE INDEX
Art. 54. This Law applies to all municipal tax violations, unless otherwise provided for in law.
INDEPENDENCE FROM VIOLATION AND CRIME
Art. 55.-In cases where the same conduct constitutes tax evasion and tax crime, both violations will be independently sanctioned.
PRINCIPLE OF IRRETROACTIVITY
Art. 56.-Tax rules relating to contraventions only govern for the future.
Infringements shall be sanctioned in accordance with the law in force at the time they were committed, unless the new provisions favour the offender.
VIOLATION OBJECTIVITY
Art. 57.-The facts that constitute contraventions pursuant to this Law or to the laws or ordinances of the creation of municipal taxes, shall be understood to have been configured by the single occurrence of those facts, regardless of the intention, cause or the reason the author was executed. The alleged offender will only be free of liability if it proves that the failure to configure the violation did not occur.
RESPONSIBLE FOR THE VIOLATION
Art. 58.-Responsible for the violation is the taxable person of a tax obligation, established by this Law or in laws or ordinances of creation of municipal taxes, which ceases to fulfill it, either by action or omission. When the subject does not comply with the time and form set forth in the corresponding rule, it will be understood to have incurred the violation.
SCOPE OF LIABILITY
Art. 59.-The liability for failure to comply with the penalties provided for in this Law is transmittable to the successors of the infringer, and transferable in case of tradition to any title.
LIABILITY FOR ACTS OF DEPENDENTS
Art. 60.-The taxable person of the tax obligations shall be liable for the contraventions even if they are materially committed by them, the representatives, directors, managers, administrators, directors or dependents with authorization, without (a) prejudice any actions that may be exercised against them for their responsibility on the same.
EXTINCTION OF THE FACULTY TO MAKE THE RESPONSIBILITY EFFECTIVE
Art. 61.-The faculty of the municipal tax administration to apply penalties for contraventions is extinguished by its prescription.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
15
___________________________________________________________________ LEGISLATIVE INDEX
PRESCRIBING THE SANCTIONING FACULTY
Art. 62.-The authority of the municipal tax administration to apply penalties for infractions shall prescribe within three years, counted since the infringement was committed.
After the time limit for the decision to be complied with, the (a) the administrative judicial action must be exercised by the municipal tax administration, except as provided for in Article 36.
SANCTIONS CLASSES
Art. 63.-The penalties for tax violations are as follows:
1st Multa;
2nd Comiso of species that have been the object or the means to commit the violation; and
3rd Closing of establishment.
VIOLATIONS OF THE OBLIGATION TO DECLARE AND CORRESPONDING PENALTIES
Art. 64.-They are in violation of the obligation to declare taxes to the municipal tax administration:
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 contribute the applicable fine will be ¢ 25.00.
2nd Submit false or incomplete statements. The corresponding penalty consists of a fine of 20% of the tax omitted and can never be less than ¢ 25.00. If the taxpayer is unable to contribute, the fine to be applied is ¢ 25.00
3º 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 from the date on which the time limit for the submission of the declaration was concluded, until the day on which it was lodged, less than ¢ 25.00. If you do not pay tax, the fine will be ¢ 10.00.
VIOLATIONS OF THE OBLIGATION TO PAY AND CORRESPONDING PENALTIES
Art. 65.-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 the fine will be 10%. In both cases the minimum fine will be ¢ 25.oo.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
16
___________________________________________________________________ LEGISLATIVE INDEX
VIOLATIONS OF THE OBLIGATION TO ALLOW CONTROL BY THE MUNICIPAL TAX ADMINISTRATION AND CORRESPONDING SANCTIONS
Art. 66.-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 sanction is 0.50% of the declared asset, and will never be less than ¢ 50.oo and not more than ¢ 10 ,000.oo. If however the application of that fine, the Contributor 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.
VIOLATIONS OF THE OBLIGATION TO REPORT AND SANCTIONS CONCERNED
Art. 67.-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, which 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
VIOLATIONS OF OTHER APPLICABLE TAX OBLIGATIONS AND PENALTIES
ART. 68.-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.oo to ¢ 500.oo according to the severity of the case and the economic capacity of the offender.
CHAPTER III MUNICIPAL TAX CRIME
Art. 69.-Municipal tax crimes constitute the conduct that is classified and sanctioned as such in the Penal Code or in special laws.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
17
___________________________________________________________________ LEGISLATIVE INDEX
MUNICIPAL TAX ADMINISTRATION ACTIONS REGARDING TAX CRIMES
Art. 70.-Without prejudice to the punishment of the facts that constitute municipal tax contraventions, if those same facts or other facts, in the judgment of the municipal tax administration, make the existence of a tax offence presumed, for which Municipal Public Finance will be harmed, such administration will practice the relevant administrative investigations to ensure the obtaining and preservation of the evidence and the identification of the participants in such crimes.
CRIMINAL ACTION EXERCISE
Art. 71.-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 case, request the Attorney General of the Republic initiating the criminal action that corresponds to the competent court, without prejudice to the City Council's particular name for the same effects.
TITLE IV
OF THE MUNICIPAL TAX ADMINISTRATION
CHAPTER I FUNDAMENTALS
ORGAN OF THE TAX ADMINISTRATION
Art. 72.-The determination, application, verification, control and collection of municipal taxes, make up the basic functions of the Municipal Tax Administration, which will be exercised by the Municipal Councils, Municipal Mayors and its dependent bodies, to which the application of this Law, the laws and ordinances of the creation of municipal taxes, the laws and regulations of the municipal authorities are responsible.
PRESUMPTION OF VERACITY OF THE ACTS EMANATED FROM THE MUNICIPAL TAX ADMINISTRATION
Art. 73.-The facts of which the officials and employees of the municipal tax administration in the exercise of their duties are recorded are true, without prejudice to the contrary.
DELEGATION OF POWERS
Art. 74.-The officials of the municipal tax administration, after agreement of the council may authorize other officials or employees dependent on them to resolve on certain matters or to make use of the attributions that this Law or the laws and ordinances of the creation of municipal taxes grant them.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
18
___________________________________________________________________ LEGISLATIVE INDEX
PRESUMPTION OF LEGITIMACY OF MUNICIPAL TAX ADMINISTRATION ACTS
Art. 75. The acts of the municipal tax administration shall be presumed legitimate, unless otherwise proved, provided that they are carried out by competent officials or their delegates, with the formalities and requirements laid down in laws, agreements, ordinances, (b) Regulations or corresponding administrative rules.
Legitimate assumptions, acts of settlement of municipal taxes, fines, interest, notifications, requirements, notices, citations, charges and other similar shall be presumed, carried out by the municipal tax administration through systems computerized, when these documents contain in addition to the printed signature of the corresponding official or delegate, the data and information necessary for the correct understanding of its contents.
CHAPTER II FACULTIES AND DUTIES OF THE MUNICIPAL TAX ADMINISTRATION AND FORMAL DUTIES OF OFFICIALS AND TAXPAYERS
Section I POWERS OF THE MUNICIPAL TAX ADMINISTRATION
ENUNCIATION OF FACULTIES
Art. 76. According to the provisions of this Law and in the laws or ordinances of the creation of municipal taxes, for the fulfillment of their duties, the municipal tax administration shall have the following powers:
1 Regulations
2nd Faculty of Determination of the Tax Obligation;
3rd Faculties of Verification and Control;
4th Faculties of Collection and Recovery;
5th Faculty of Penalty Of Tax Violations;
6th Support Faculties.
REGULATORY FACULTIES
Art. 77.-It is up to the Municipal Councils to fix the policies, criteria and general regulations to which the mayors and agencies dependent on the municipal tax administration should adjust the exercise of their functions. It is also up to him to issue ordinances, regulations and agreements to normalize the municipal tax administration.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
19
___________________________________________________________________ LEGISLATIVE INDEX
RULES ON INTERPRETATION OF TAX LAWS
Art. 78.-The power to interpret the ordinances of the creation of municipal taxes administratively, through general rules, corresponds to the Municipal Councils.
MODIFICATION AND REPEAL OF THE GENERAL RULES
Art. 79.-The general rules issued by Municipal Councils may only be amended or repealed by themselves.
VALIDITY of the RULES
Art. 80.-The general rules shall begin to apply eight days after their publication in the Official Journal or in a journal of greater circulation at national level, and shall be in force as long as they are not modified or deleted.
FACULTY DETERMINATION OF THE TAX AND FACULTY OBLIGATION
SANTIONER
Art. 81.-The municipal tax administration will have the power to determine the tax obligation and to sanction the tax violations; powers that are regulated and applied in accordance with the procedures established in the CHAPTER III of this Title.
VERIFICATION AND CONTROL POWERS
Art. 82.-THE MUNICIPAL TAX ADMINISTRATION SHALL HAVE THE POWERS OF CONTROL, INSPECTION, VERIFICATION AND INVESTIGATION OF TAXPAYERS OR RESPONSIBLE PERSONS IN ORDER TO COMPLY WITH THE OBLIGATIONS LAID DOWN IN THIS LAW, AS WELL AS LAWS AND REGULATIONS. ORDINANCES FOR THE CREATION OF MUNICIPAL TAXES, THEIR REGULATIONS AND IMPLEMENTING RULES. THE PROCEDURE FOR CARRYING OUT CONTROL, INSPECTION, VERIFICATION AND INVESTIGATION IS THE SET OF ACTIONS THAT THE MUNICIPAL TAX ADMINISTRATION CARRIES OUT FOR THE PURPOSE OF ESTABLISHING COMPLIANCE OR NON-COMPLIANCE WITH THE MUNICIPAL TAX OBLIGATIONS TO DETERMINE THE TRUE TAX SITUATION OF TAXABLE PERSONS, WHETHER OR NOT THEY HAVE SUBMITTED THEIR CORRESPONDING TAX RETURN. THIS PROCEDURE STARTS WITH THE NOTIFICATION OF THE CONTROL, INSPECTION, VERIFICATION AND INVESTIGATION ORDER, SIGNED BY THE COMPETENT OFFICIAL, WHICH IS CALLED AN AUDITOR ' S DESIGNATION OF ORDER, INDICATING INTER ALIA THE IDENTITY THE TAXABLE PERSON, THE PERIODS OR PERIODS, TAXES AND OBLIGATIONS TO MONITOR, VERIFY, INSPECT AND INVESTIGATE, AS WELL AS THE NAME OF THE AUDITOR OR AUDITORS TO CARRY OUT THAT TASK AND, IT ENDS, WITH THE ISSUANCE OF THE RELEVANT REPORT AUDIT BY THE AUDITOR OR AUDITORS APPOINTED TO THE CASE, WHICH SHALL BE DULY NOTIFIED TO THE TAXABLE PERSON AND SHALL SERVE AS A BASIS FOR INITIATING THE PROCEDURE LAID DOWN IN ARTICLE 106 OF THIS LAW. (4)
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
20
___________________________________________________________________ LEGISLATIVE INDEX
Such functions shall be exercised by officials and appointed employees or delegates for such purposes in accordance with Art. 74 of this Law.
For the proper exercise of these functions, the municipal tax administration may perform the following actions:
1 Practice inspections on
2º Require the taxpayers or persons responsible for the display of their books and accounting records, whether they are manual, mechanized or computerized, and their financial statements and assets, in order to examine them and verify them;
3rd Require information and statements to the taxpayers or responsible, in relation to the fulfillment of their tax obligations;
4th Require of any person, particularly of officials of institutions public and private business owners or representatives, as well as the authorities in the general, all data and information necessary for tax verification and control;
5th Citar to contributors, responsible or third parties to give those statements deemed necessary for verification and control or to support any performance or procedure of the municipal tax administration;
6th Require directly the assistance of the public force, where there are impediments in the performance of its functions, except that by disposition legal order, judicial order is needed for this purpose.
COLLECTION POWERS AND COLLECTION
Art. 83.-The collection of the payment of the taxes and their accessories will be carried out by the Treasurer of each Municipality, who will have under his responsibility the perception and custody of the income by such concepts, which will concentrate the General Fund of the Municipality concerned.
The perception of payment of the taxes will be made by the filing by the interested party of the order of income or corresponding collection document, owing the Municipal Treasury to extend receipt of income by the amount entered, in the forms which for such purpose are authorized by the Court of Accounts of the Republic.
COLLECTION MAY BE PERFORMED DIRECTLY BY THE MUNICIPAL TREASURY OR THROUGH THE MECHANISMS PROVIDED FOR IN ARTICLE 89 OF THE MUNICIPAL CODE, WITHOUT ANY LIMITATIONS OTHER THAN THOSE ESTABLISHED IN THE RESPECTIVE CONTRACT, WHICH FOR THIS PURPOSE IT IS DRAWN UP AND IN THE CIVIL OR TRADE CODE, AS THE CASE MAY BE. (3)
Art. 84. In order to ensure the effective collection of Municipal Taxes, the tax administration must establish the dependent agencies responsible for exercising control over the payment of taxes, fees and special contributions. of the contributors or responsible, as well as
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
21
___________________________________________________________________ LEGISLATIVE INDEX
the mechanisms for determining and recovering default derived default in the payment of such taxes.
POWERS OF SUPPORT
Art. 85. In order to promote the development of municipal taxation, the municipal bodies concerned must, to the extent of their possibilities, establish systems for the Registration of Taxpayers, Current Account, Statistics and Tax Catastre.
MUNICIPAL TAX ADMINISTRATION DUTIES
DUTY OF CONFIDENTIALITY
Art. 86.-The declarations and information that the municipal tax administration receives from the taxpayers, responsible and third parties, will be confidential, and only information about the tax returns can be provided in the cases expressly specified in the laws or when they are ordered by the courts that know of tax proceedings, executive collection, tax-crime trials, as well as for the publication of data statistics, which for its generality does not permit the individualization of taxpayers.
The files containing statements of the contributors and the annexes thereto, the actions and procedures of the municipal tax administration, may be examined by the taxpayers, responsible, their legal or proxy representatives or any duly authorized person prior to the accreditation of the identity or the person's person, if any.
DEBER OF ADVERTISEMENT
Art. 87.-The ordinances, regulations and agreements that govern the municipal tax administration, must be published in the Official Journal or in a newspaper of greater circulation at national level, when this is economically possible.
Section III RESPONSIBILITY OF OFFICIALS AND TAXPAYERS
RESPONSIBILITY OF OFFICIALS DUTY TO REPORT
Art. 88.-Officials, employees and authorities in general, and in particular those of the municipal tax administration, shall inform as soon as possible those facts which they know in the exercise of their duties and which they may configuring violations of tax rules and non-compliance by taxable persons.
CONTROL DEER
Art. 89.-They are required to supply information, data and background to the administration
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
22
___________________________________________________________________ LEGISLATIVE INDEX
municipal tax, the following officials:
1. Central or decentralized public administration officials are required to provide all information requested by the municipal tax administration for the verification and control of municipal taxes, with the exception of information of a confidential nature, in accordance with legal provisions.
2nd The Registrar of Commerce shall send monthly to the corresponding municipal tax administration, relation of the authorized trade license plates in that period, that they compete with the same.
3rd the Public Notaries and the Registers of Commerce and the Property Root and Mortgage, must communicate to the corresponding municipal tax administration, the acts or contracts that to be granted to them or to be subject to their registration, respectively, which are of relevance the tax and to be determined in an express manner in laws or agreements to create municipal taxes.
4th The Registry of the Root and Mortgage Property of the Republic will not register any instrument in which the transfer or property lien, to any degree that is, if there is no evidence of the solvency of municipal taxes on the root object of the transfer or lien.
Neither shall the written record of the the constitution, modification and dissolution of commercial companies, without being presented to the Registrars of Commerce, constancy of solvency of municipal taxes of the partners of the society, as the case may be.
5th The liquidators of companies and companies, the arbitrators and partidores of goods, must make the necessary steps for the determination and payment of the municipal taxes due in the cases raised.
OBLIGATIONS OF TAXPAYERS, OFFICIALS AND THIRD PARTIES
Art. 90.-The taxpayers, persons responsible and third parties, shall be obliged to comply with the formal duties established in this Law, in laws or ordinances for the creation of municipal taxes, their regulations and other normative provisions dictate the municipal tax administrations, and they are particularly obliged to:
1 Register for tax records to be established by these administrations; provide them with relevant data and communicate them in a timely manner. any modification to it;
2nd Request, in writing, to the Respective municipality, the licenses or prior permits required to install commercial establishments and premises and inform the tax authority of the date of commencement of the activities, within thirty days of such date;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
23
___________________________________________________________________ LEGISLATIVE INDEX
3rd Report on changes of residence and on any other circumstances that modify or may cause the tax obligations to disappear, within thirty days of the date of such changes;
4º PERMIT AND FACILITATE INSPECTIONS, EXAMINATIONS, CHECKS OR INVESTIGATIONS ORDERED BY THE MUNICIPAL TAX ADMINISTRATION AND WHICH IT WILL CARRY OUT BY MEANS OF ITS OFFICIALS DELEGATED TO THAT EFFECT; (4)
5º Present the declarations for the determination of the taxes, with the respective annexes, when so find, within the time limits and in accordance with the relevant formalities;
6th Concurrir to the municipal offices when cited by tax authority;
7th Taxpayer to terminate your business or activity, for any cause, it shall inform the municipal tax authority in writing, within the 30 days after the date of completion of its business or activity; it shall, at the same time, submit the relevant statements, balance sheet or final inventory and make payment of the taxes due without prejudice to the authority The tax authorities may verify ex officio the definitive closure of any establishment;
8th legal persons not domiciled in the country and who develop economic activities in certain municipal understandings, a representative must be accredited to the municipal tax administration and communicate it in a timely manner. If you do not communicate it, the managers or administrators of the establishments owned by such legal persons will be held as such;
9th. TO PRESENT OR DISPLAY STATEMENTS, BALANCE SHEETS, PHYSICAL INVENTORIES, BOTH THOSE VALUED AND THOSE RECORDED WITH THE CORRESPONDING ADJUSTMENTS IF ANY, REPORTS, DOCUMENTS, ASSETS, RECORDS AND OTHER REPORTS RELATED TO TAX-GENERATING FACTS; (4)
10th. TO ALLOW THE ACCOUNTING, RECORDS AND DOCUMENTS TO BE EXAMINED, TO DETERMINE THE TAX BASE, TO SETTLE THE TAX THAT CORRESPONDS TO IT, TO MAKE SURE THAT THE OBLIGATION TO PAY THE TAX DOES NOT EXIST ACCORDING TO THE LAW, OR TO VERIFY THE APPROPRIATE ONE COMPLIANCE WITH THE OBLIGATIONS LAID DOWN IN THIS GENERAL LAW OR IN THE RESPECTIVE TAX LAWS; (4)
11º. IN GENERAL, TO GIVE THE CLARIFICATIONS REQUESTED BY THE LATTER, AS WELL AS TO PRESENT OR TO EXHIBIT AT THE REQUEST OF THE MUNICIPAL ADMINISTRATION WITHIN THE PERIOD FOR WHICH IT GRANTS, THE BOOKS OR ACCOUNTING RECORDS REQUIRED IN THIS LAW AND OTHERS WHICH ARE OBLIGED TO CARRY OUT IN ACCORDANCE WITH OTHER SPECIAL LAWS. (4)
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
24
___________________________________________________________________ LEGISLATIVE INDEX
COMPLIANCE WITH OBLIGATIONS
Art. 91.-Formal duties must be fulfilled:
1. When it is natural persons, in personal form or through their legal representatives or proxies.
2nd In the case of legal persons, through their representatives legal or proxy.
3rd In the case of entities that do not have legal personality, in accordance with Common Law, by the persons who manage their assets, and in their absence, by any of the members of the entity.
4th In the case of Successions and Trusts, by the heirs or representatives of the Succession, and the Trustees or administrators that the seconds designate.
CHAPTER III OF THE MUNICIPAL TAX ADMINISTRATIVE PROCEDURE
GENERAL RULES SECTION I
APPEARANCE
Art. 92.-Taxpayers, persons responsible or third parties may act personally or through their legal representatives or proxies.
The legal representative or the proxy shall, when first submitted, accredit his or her person.
PLACE TO HEAR NOTIFICATIONS
Art. 93.-Those interested in their first performance should indicate place to hear notifications in the urban area of the Municipality concerned.
WORKING HOURS FOR ADMINISTRATIVE ACTIONS
Art. 94.-The actions of the municipal tax administration and those carried out before it, shall be carried out in the working days and hours that the mayor points out, unless it is acts which, by their nature, must be carried out in days and hours. flagged as such.
FORMS OF NOTIFICATION
Art. 95.-The notifications of the municipal tax administration will be made in the following ways:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
25
___________________________________________________________________ LEGISLATIVE INDEX
1st Personally;
2nd By Cuttings;
3rd By Edict;
4 °. BY EMAIL OR REGISTERED MAIL; (4)
5 °. BY OTHER MEANS OF COMMUNICATION TECHNOLOGY THAT LEAVE A PERCEPTIBLE TRACE; AND (4)
6 °. BY PUBLICATION IN THE OFFICIAL JOURNAL OR IN ANY OF THE NATIONAL CIRCULATION NEWSPAPERS. (4)
THE NOTIFICATION BY REGISTERED MAIL, E-MAIL AND OTHER COMMUNICATION TECHNOLOGY MEANS THAT THEY LEAVE A PERCEPTIBLE TRACE, AS WELL AS, THROUGH THE PUBLICATION IN THE OFFICIAL JOURNAL OR IN ANY OF THE NEWSPAPERS OF NATIONAL CIRCULATION SHALL BE CARRIED OUT IN THE CASES EXPRESSLY PROVIDED FOR IN THE TAX LAWS OR WHEN THE ADMINISTRATIVE ACTS TO NOTIFY DO NOT INVOLVE THE EXERCISE OF THE AUDIT FUNCTION OF DETERMINATION OF TAXES AND TAXATION OF FINES; IN WHICH CASE THE NOTIFICATION SHALL BE DEEMED TO HAVE BEEN MADE ON THE DATE WHICH HAS BEEN DELIVERED OR PUBLISHED THE COMMUNICATION OF THE RESPECTIVE ACT, AS APPROPRIATE. (4)
THE DOCUMENTS THAT WILL BE USED TO IDENTIFY IN ORDER TO RECEIVE NOTIFICATIONS OF A TAX CHARACTER MAY BE ANY OF THE FOLLOWING: SINGLE IDENTITY DOCUMENT, PASSPORT, DRIVER ' S LICENSE, MEMBERSHIP CARDS SALVADORAN INSTITUTE OF SOCIAL SECURITY AND FOR FOREIGN PASSPORT OR RESIDENT MEAT, OR ANY DOCUMENT THAT MAY BE THE OFFICIAL PERSONAL IDENTIFICATION DOCUMENT. (4)
THE NOTIFICATION BY MEANS OF THE OFFICIAL JOURNAL OR BY ANY OF THE NEWSPAPERS OF NATIONAL CIRCULATION SHALL BE MADE IN THE CASES EXPRESSLY PROVIDED FOR BY THE TAX LAWS AND MAY ALSO BE CARRIED OUT IN THOSE CASES THAT ARE REQUIRED MAKE THE KNOWLEDGE OF TAXABLE PERSONS, GENERAL INFORMATION, GENERAL RESOLUTIONS OF REGISTRATION OR MASSIVE DISREGISTRATION OF TAXPAYERS OR ANY OTHER KIND, AS WELL AS PUBLICATION OF OMISOS OR DEBTORS, OR ANY OTHER COLLECTIVE ACTION. (4)
PERSONAL NOTIFICATION
Art. 96.-Personal notification shall be made by authorized person, personally giving the notified person, or his legal or proxy representative, at the place indicated to hear notifications extract or full copy of the Resolution or actions of
The notification is also personal when the data subject or his legal representative or proxy is present to the offices of the municipal tax administration, and receives the copy referred to in the paragraph.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
26
___________________________________________________________________ LEGISLATIVE INDEX
previous.
In any case, the minutes of the day, time, and place of the notification will be lifted.
NOTIFICATION BY CORNER
Art. 97.-The notification corner shall contain an extract or a full copy of the action notified. It shall be delivered by authorized person, at the place indicated by the person concerned, to any person of age who is in it, and if there is no person who receives it, he shall fix the corner at that place, as soon as the person concerned has been sought interested at least once before and the respective record has been lifted on the record that it has not been found.
The notification by esquela shall be recorded in the minutes by whom the diligence is carried out, with the indication of the day, time and place in which it was practiced, and the person to whom the corner was delivered or not to have found a person older than the recipient.
The corner can be written by any means.
NOTICE BY Edict
Art. 98.-The notification by edict must, in the cases in which it is ordered by this General Law, the laws or ordinances of the creation of municipal taxes, or where there is no place indicated or registered to hear notifications, or
edict will be fixed on the Board of the Municipal Office and will contain a brief and clear extract of the corresponding action, for the term of forty and eight hours, past which notification will be made.
When you consider it convenient Municipal tax administration may notify by edict, publishing it for once in a local circulation newspaper if it has, or on a daily basis of greater national circulation. After forty-eight hours of publication, notification will be made.
The day's proceedings and the form of the notification by edict will be recorded.
ORIGIN OF THE DIFFERENT FORMS OF NOTIFICATION
Art. 99.-The summons, placement and notification shall be in accordance with the procedure laid down in Chapter II of the Code of Civil Procedures.
Section II PROCEDURES FOR DETERMINING THE MUNICIPAL TAX OBLIGATION
CONCEPT OF DETERMINING THE MUNICIPAL TAX OBLIGATION
Art. 100.-The determination of the municipal tax obligation is the legal act by means of the
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
27
___________________________________________________________________ LEGISLATIVE INDEX
which states that the operative event of a municipal tax has occurred, the taxable person is identified and the amount or amount is calculated.
The determination is governed by the law, ordinance or agreement in force at the time the made obligation generator.
DETERMINATION TAX
Art. 101.-The municipal tax administration shall determine the tax obligation, in those cases where the Law or Ordinance for the creation of municipal taxes, order it and shall make it based on the background of its power.
When such Laws, Ordinance or Agreements establish it, taxpayers shall provide the data or documents, or submit statements in order for the administration to carry out such determination.
DETERMINATION DECLARATION
Art. 102.-When the law or ordinances of the creation of municipal taxes or their regulations so establish, the taxpayers or responsible, previously or with the payment, shall submit affidavit to the municipal tax administration, in the deadlines, with the relevant data and attachments.
In this case, the determination of the tax obligation must be made to the taxable person.
MODIFICATION OF DECLARATIONS
Art. 103.-The declarations and annexes are considered definitive, but may be modified, provided that the municipal tax administration has not determined the respective tax obligation.
If as a result of this modification, the A taxpayer may be entitled to refunds of amounts paid in excess or unduly, or to a credit against the Municipality, may exercise the repetition action provided for in Section V of this Chapter.
EFFECTS OF THE OMISSION OF DECLARATION
Art. 104.-When the taxpayer or the person responsible is obliged to make statements and does not do so, this omission typifies a tax violation subject to the sanction provided for in Art. 64, numeral first of this Law; and may also give rise to the tax administration to determine, of its own motion, the corresponding obligation.
DETERMINATION OF THE TAX OBLIGATION BY THE ADMINISTRATION
Art. 105.-As long as it does not prescribe the appropriate faculty, the municipal tax administration,
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
28
___________________________________________________________________ LEGISLATIVE INDEX
will proceed to determine the tax obligation, and will take place in these cases:
1. When the taxpayer or the person responsible has omitted to make statements, being obliged to do so, or has omitted the fulfillment of the the obligation referred to in Art. 108 of this Law.
2 municipal tax administration has reasonable doubts as to the accuracy or accuracy of the declarations submitted, or shall not be added to them, the required documents.
3º When the taxpayer will not carry accounting, being required by this Law or other legal order or not to display it to the required serle, or the one I will take will not reflect its actual economic capacity.
PROCEDURE FOR DETERMINATION OF TRADE
Art. 106.-The determination of the office of the municipal tax obligation, will be submitted to the following procedure:
1. The municipal tax administration will notify and transcribe the taxpayer, the observations or charges it has in their counter, including any violations against them;
2nd In the 15-day term, which for justified reasons, may be extended for an equal period, the taxpayer or the person responsible must formulate and substantiate his or her discharge, the requirements to be made and to provide the relevant evidence;
3º Received the reply within the term referred to, if the taxpayer or the person responsible has offered evidence, shall be opened for proof by the end of 15 days. The municipal tax administration may, on its own initiative or at the request of a party, order the practice of other measures within the time limit it deems appropriate;
4th If the taxpayer or liability does not make and base its discharge, or does not comply with the with the requirements that are made to you, or does not present or offer proof, within the term referred to in the ordinal 2nd of this article, will expire its right to submit it later;
5th If the taxpayer or responsible will manifest in the term, its conformity with the observations and charges, the tax administration The municipality will proceed to carry out the act of determination and to put on record the conformity and the taxpayer, to make the payment effective;
6th By beating the deadlines for the reception of tests, the municipal tax administration must, in a (a) to determine the tax obligation; where the case is merely the right, the time limit for determining that obligation shall begin to be counted.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
29
___________________________________________________________________ LEGISLATIVE INDEX
once the taxpayer or the taxpayer makes a statement of discharge.
When it has been found that a violation has been committed, the municipal tax administration may in the act of determination of the obligation tax, impose the appropriate penalty;
7th The resolution of the Municipal tax administration that determines the tax obligation, must fill the following requirements:
1) Place and Date;
2) Individualization of the agency or official that resolves and of the taxpayer or responsible;
3) Determination of the tribute in question and tax period to which it corresponds, if any;
4) Qualification of the evidence and discharge;
5) Reasons and legal provisions to substantiate the determination;
6) Specification of quantities which correspond individually to taxes and penalties;
7) Order of issuance of the corresponding income order;
8) Order of notification of the determination formulated;
9) Signature of the competent officials.
PRESCRIPTION OF THE FACULTY TO DETERMINE THE TAX OBLIGATION
Art. 107.-The power of the municipal tax administration to determine the tax obligation shall be prescribed within three years, counted from the day following the day on which the period within which the obligation was due has been paid.
Such a prescription may be interrupted by the municipal tax administration to determine the corresponding tax credit.
DETERMINATION OF THE TAX OBLIGATION WITHOUT A DECLARATION
Art. 108.-When the taxable person does not make a statement of the taxable person and the determination of the tax administration is not necessary, once the operative event occurs, the taxpayers or persons responsible shall proceed to the fulfilment of the respective obligation, without prejudice to the powers of verification and control of such compliance, which are the responsibility of the municipal tax administration.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
30
___________________________________________________________________ LEGISLATIVE INDEX
Section III PENALTY ENFORCEMENT PROCEDURES
TAX
COMPETENT OFFICER
Art. 109.-The respective Municipal Mayor or the official authorized to the effect, has competence to know of tax violations and corresponding sanctions.
APPLICATION OF SANCTIONS IN THE PROCEDURE OF DETERMINATION OF OFFICIO
Art. 110.-The penalty procedures provided for in this Section shall not apply, but the procedure for determining the duty of the tax obligation, where the infringements are to be checked and punished in the latter proceedings, of compliance with the provisions of Art. 106 of this Law.
APPLICATION OF OTHER SANTIONS
Art. 111.-They may be sanctioned by the municipal tax administration, without express resolution, the violations that follow:
1st Omission or delay in the registration of taxpayers in the Municipal Records established for that purpose;
2nd Omission or delay in the registration of goods in the corresponding Municipal Records;
3rd Omission or delay in the presentation of declarations;
4th Payment or extemporaneity in the same of the taxes
GENERAL PROCEDURE FOR THE SANTIONS APPLICATION
Art. 112.-In the case of the contraventions referred to in the previous article, the procedure for applying sanctions is as follows:
When a tax violation has been established or presumed to have been committed, the act shall be lifted by the the competent official or delegate of the municipal tax administration, in which the violation is identified, as well as the infringer, the provisions violated and the actions or omissions that criminalize the infringement. The person concerned shall sign the act; if he or she does not or does not wish to sign, this circumstance shall be stated.
The official or employee who has intervened shall give the account of the minutes to the Municipal Mayor's Office, which shall order the notification of the and any proceedings it deems appropriate to resolve in accordance with the law.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
31
___________________________________________________________________ LEGISLATIVE INDEX
DOWNLOAD TEST
Art. 113.-Notified the minutes referred to in the previous article, the person concerned within the period of 15 days, shall provide the proof of discharge that he considers relevant and shall request to be admitted.
RESOLUTION
Art. 114.-The probationary period shall be concluded and no orderly diligence shall be pending, a decision shall be taken by the Municipal Mayor or by a delegated official, within a period of 15 days, with the requirements referred to in Article 7 of the Art. 106 of this Law that were applicable.
Section IV MUNICIPAL TAX LIABILITY COLLECTION PROCEDURES
CHARGING ACTION
Art. 115.-The action to collect credits for municipal taxes, their interest and fines, proceeds as long as the credits are liquid, payable and consist of titles or documents that have an executive force.
EXECUTIVE TITLE
Art. 116.-The report of the Municipal Treasurer shall have the effect of executive force, who shall do his or her times or the official in charge of the effect in which a taxpayer or a responsible member of the Municipality is established in respect of municipal taxes and fines, duly certified by the respective Mayor.
COMPETITION FOR COLLECTION
Art. 117.-To the Municipal Sejo it is the competence to continue before the respective judicial authority, the procedures of collection of the municipal tax credits, being able the Municipal Council however the above, to appoint proxies
EXTRA-JUDICIAL COLLECTION
Art. 118.-The municipal tax administration, by means of a person authorized for that purpose, shall notify the debtor of a municipal tax credit, by any of the means referred to in this Law, of the existence of such credit, Thirty-day period from the notification, to make the corresponding payment under the prevention, which if not done, will proceed to the judicial recovery.
JUDICIAL PROCEDURE OF RECOVERY
Art. 119.-The judicial recovery of the municipal tax credit shall be made in accordance with the
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
32
___________________________________________________________________ LEGISLATIVE INDEX
procedure establishing the Code of Civil Procedures, with the following modifications:
1. The placement and the notifications to the debtor must be made at the place determined in accordance with Art. 25 of the Law;
2nd Only will be allowed as exceptions, payment and Prescription; * DECLARED UNCONSTITUTIONAL.
3º No appeal of the decree of embargo, sentence of remate, nor other providences rendered in judgment that are appealable;* DECLARED UNCONSTITUTIONAL.
4th In the event of an auction of buildings, it shall be taken as the basis for the auction, the value that has been established in the procedure for the determination of the office of the tax obligation referred to in Article 106 of this Law; in default of the value of the debtor has been given for municipal tax purposes by the debtor;
5. Only the third-established third-party third-party third-party third-party third-party third-party third-party third-party third-party third-party third-party holders shall be allowed to apply for tax purposes;
In any event, any other executive judgment may be admitted to the execution followed by the Municipality, except in the case of a trial promoted by tax credits in favor of the State; but at the request of the interested parties of other judgments, the Judge may take note of the existence of other credits.
Section V PROCEDURE OF OVERPAYMENT OR OVERPAYMENT
REPEATING ACTION HEADLINES
Art. 120.-The undue payment or excess of municipal taxes, surcharges, interest and fines, gives rise to the action of repetition, which will be the responsibility of the taxpayers or the responsible; as well as to third parties who have made the payment considered undue or in excess.
DEADLINE TO INTERJECT THE ACTION
Art. 121.-The repeat action must be brought within three years from the date of payment.
PROCEDURE
Art. 122.-The action of repetition shall be brought before the respective Municipal Mayor.
If the Municipal Mayor considers the action to be based on the documentation
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
33
___________________________________________________________________ LEGISLATIVE INDEX
contributed by the data subject and the background of the administration, will resolve to accept the corresponding request.
Otherwise, it will be open for 15 days for the petitioner to provide proof of proof. of your request. If the Municipal Mayor does not order new proceedings, he shall decide within the period of eight days, which shall be counted after the end of the probative term or after the proceedings have been carried out.
CHAPTER IV OF THE APPEAL RESOURCE
Art. 123.-Of the rating of taxpayers, of the determination of taxes, of the resolution of the Mayor in the procedure of repetition of the payment of not due, and of the application of sanctions made by the municipal tax administration, It shall be admissible to the respective Municipal Council, which shall be brought before the official who has made the qualification or pronounced the relevant decision, within three days of its notification.
When of the situations provided for in Art. 108 of this Law, the issuance of The income of the taxpayer, the taxpayer or the person responsible may also bring an appeal, and the term of three days referred to in the preceding paragraph shall be counted from the day following that of the delivery of the respective order.
This resource will be processed as follows:
Interposition the resource, the resolver officer will admit it in both effects, it will place the appellant so that, within three days, it will appear before the City Council to make use of your rights, to whom you will refer the original proceedings.
If the appellant leaves the term of the site must be completed without being a party, the City Council shall declare the appeal to be deserted.
If the appellant has appeared in time, he shall be heard within a third day, to express all his grievances, present the instrumental test of discharge and offer any other evidence.
The testimonial test will be taken into account if there is a test principle of another nature.
If the appellant offers evidence other than the instrument, the Council will open for eight days to receive it and to pick up the necessary one.
Expired the probative term or that of the hearing of the expression of grievance, when the opening to the test is not given, the Council, within the term of eight days, will decide the corresponding resolution.
Art. 124.-Of the decision rendered by the Municipal Council, the person concerned in accordance with the provisions of the Law of the Administrative Litigation Jurisdiction, may exercise the corresponding action before the Room of the Administrative Contentious of the Supreme Court of Justice.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
34
___________________________________________________________________ LEGISLATIVE INDEX
TITLE V
MUNICIPAL TAXES
CHAPTER I TAXES
BASIC PROVISIONS
Art. 125.-They may be affected by municipal taxes, commercial, industrial, financial and service undertakings, whatever their turn or specialty; any other economic activity carried out in the compression of the Municipality, as well as the real estate owned by it.
Art. 126. For the application of the taxes referred to in the previous Article, the laws of creation shall take into account, the nature of the undertakings, the amount of their assets, the profits they receive, any other manifestation of the economic capacity of the passive subjects and the socio-economic reality of the Municipalities.
Art. 127.-In the determination of the tax base and in the structuring of the corresponding tariffs, those deductions and liabilities must also be considered, at the minimum and maximum limits deemed appropriate, in order to ensure the conservation of productive capital and any other source of income, stimulus to productive investments, and that, on the other hand, allows the Municipalities to obtain the resources it needs for the fulfillment of its purposes and to ensure authentic municipal autonomy.
Art. 128.-The exercise of taxation in the field of municipal taxes may be monthly or annual or for periods of different extension, as determined in the respective law.
CHAPTER II OF THE TASES
Art. 129.-The Municipalities may establish by issuing the respective ordinances, fees for the services of an administrative or legal nature that they provide.
Art. 130.-They will be affected to the payment of the fees, the public services such as those of street lighting, toilet, ornate, restrooms and public sinks, communal communal houses, cemeteries, public dormitories, markets, establishments in places and public places, paving of public roads, municipal trail, tiangues, municipal stadiums, municipal swimming pools and other services that the conditions of each municipality allow to provide to the public or to represent the use of goods
for the fixing of fee rates, the Municipalities will have to take in It counts the costs of supplying the service, the benefit it provides to the users and the socio-economic reality of the population.
The Municipalities will be able to incorporate in the fixing of the rates for services, differentiated rates, which are not may exceed 50% in addition to the cost of the service provided or administered, and the proceeds of which shall be for the improvement and extension of those services.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
35
___________________________________________________________________ LEGISLATIVE INDEX
Art. 131. The legal services provided by the Municipality, such as: authentic signatures, issuance of certifications and constances, guides, private documents, licenses, license plates, permits, marriages, etc. will also be affected. evidence of title deeds, livestock transactions and other similar services provided by the Municipality, as well as other activities, which require municipal control and authorization for its operation.
the corresponding tariffs, the criteria considered in the second one shall apply and third indent of the previous article.
FOR SERVICES TO RE
Art. 132.-To fix the charges applicable for municipal public services which are provided for property ownership, they must be considered among other criteria, if this is of an urban or rural nature; the area in which it is located; intended for room house or for industry, commerce or services; whether or not it is subject to the property ownership regime for flats and apartments; and whether or not it pregave baldio.
OF THE MARKET SERVICE
Art. 133.-The charges for the fees for premises and sales, as well as for other services provided by the municipal markets, must be based on criteria such as: location and size of local posts, comfort and facilities that they offer, the nature of the sales, the volume and demand of the products marketed.
THE TRACES SERVICE
Art. 134.-Within the fees for the services provided by the municipal traces, the following activities shall be included: review of livestock and minor destined for slaughter, post-slaughter veterinary inspection, slaughter and
OF LIVESTOCK TRANSACTIONS.
Services of a similar nature that the Municipality provides to private traces will also be affected.
Art. 135.-The municipalities shall establish fees for the granting of iron and herrar marks, merchants, runners, stowers and matarifes of livestock and children; for the endorsement, replacement and transfer of license plates; legalization or granting of the "Good" for transactions of cattle; for the post of cattle greater or less; the issuing of guides for moving of semovents; the authentic ones of signatures in the documents that will cover letters powers, the ones of revokes of the same and others related to these transactions.
CEMETERY SERVICES
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
36
___________________________________________________________________ LEGISLATIVE INDEX
Art. 136.-Cemeteries are urban or rural buildings, which are used for burial, burial and incineration of human remains.
NATURE OF CEMETERIES
Art. 137.-The cemeteries may be Municipal, Particular and of Mixed Economy. They are municipal ones established and managed by the Municipalities. They are private individuals established and managed with private capital, including in these mortuary crypts in religious temples. They are from Mixed Economy those established and managed with municipal and private capital.
RESPECTIVE RATES AND RATES
Art. 138.-The municipalities will have to establish in the respective ordinances, the fees for the different services provided by the municipal cemeteries.
For the fixing of the corresponding rates, they must be taken into consideration importance and category of the cemeteries, the socio-economic conditions of the population, the self-financing of the services provided, as well as the magnitude, cost and quality of niches, mausolees and similar works that the users build.
FEES FOR RIGHTS AND TITLES
Art. 139.-The licences may be subject to fees, all records, acts or actions derived from cemetery services; the issue of securities, replacement, transfer or swap and extension thereof; issue of certificates of any nature and other documents that are issued in the field of records.
Art. 140.-fees may also be included for permits such as: care of gardens for each post; transfer of dead bodies within the same cemetery or from one cemetery to another in the same municipality; transfer of a body outside the municipality or the country; Burial of osamenta in osariums; burial in cantonese cemeteries; introduction of building materials into the cemetery and others similar.
OF THE PARKING lots
Art. 141.-The municipalities will determine the fees and the way to receive them that will have to be paid for the use of parking areas of motor vehicles in streets, squares, avenues and other public places established or authorized by them, within their understanding.
FEES FOR LICENSES, LICENSE PLATES, OR PATENTS
Art.142.-All acts requiring the approval or permission of the Municipality to be carried out such as: constructions, extensions and repairs of buildings; lotification and housing estates; construction of chalets on sites public or municipal; placement of advertisements or signs; commercial propaganda; use of talking devices; raffles, raffles or random contracts; realization or baratillos of merchandise; break of pavement in public or municipal streets; operation of
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
37
___________________________________________________________________ LEGISLATIVE INDEX
tiangues or private squares and similar ones.
Art. 143.-They will also be taxed: the extension of patents, licenses or permits for buhoneros, venders of packaged spirit, other activities or businesses that require authorization from the Municipality; as well as all those social activities that require Municipal license, such as: dances for commercial purposes; operation of racecourses; canodroms and the like.
FEES FOR LEGAL SERVICES
Art. 144.-The celebration of marriages outside the municipal office, registration and registration of titles, registration of private documents, authentic signatures and documents, extension of certifications and other related services will also be taxed.
Art. 145.-In determining the fees to be charged on the municipal acts referred to in the previous article, consideration must be given to the cost of the service in particular and the legal significance of such acts.
CHAPTER III OF THE SPECIAL CONTRIBUTIONS
Art. 146.-The income that the municipalities obtain for the application of the tax defined in Art. 6 of this Law will not be able to have an alien destination to the financing of the corresponding public works.
In the case of public works, the The provision has as a total limit the cost of the same and as an individual limit the actual or presumed special benefit of the recipients of the same.
Art. 147.-The Municipalities will be able to apply taxes of this nature for the financing of new works, paving of streets, introduction of sewers, installation of electric lighting, opening of neighborhood roads and other communal works, be either urban or rural.
Art. 148.-For the application of special contributions, the Municipalities must issue the corresponding ordinances.
TITLE VI
GENERAL PROVISIONS
ONLY CHAPTER
Art. 149.-For the study and elaboration of the bills and ordinances of creation, modification and repeal of their taxes, the Municipalities shall appoint a Special Commission composed of officials and employees of the same. They may incorporate into the Commission, if they consider it appropriate, professionals or technicians who have specialized knowledge or experience and interest in this field, without prejudice to the technical assistance of the Salvadoran Institute of Municipal Development, that of the Corporation of Municipalities of the Republic of El Salvador or other entities.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
38
___________________________________________________________________ LEGISLATIVE INDEX
Art. 150. Before issuing the agreements or ordinances for the creation of special taxes and contributions, the municipalities may request the opinion of the Salvadoran Municipal Development Institute, who based on the technical studies done to this effect, make the appropriate recommendations.
If the Institute warns that the draft ordinance deviates from such guidelines, it will point out this in the relevant opinion and will formulate recommendations that will contribute to the failures.
In the presence of the opinion referred to by the The Municipal Councils shall take the corrective measures they deem relevant.
Art. 151.-The Municipalities will have to modify the current structure of their tax systems, replacing those taxes of low income generation by others that will ensure a greater collection for the due fulfillment of the ends of the Municipality and in order to simplify, modernise and make such systems efficient.
In cases of new taxes or derogations from existing ones, a justification for such a measure should be given in the relevant technical studies.
Art. 152.-The Municipalities shall periodically review their corresponding laws and tax ordinances, with the purpose of updating them in accordance with the conditions of the prevailing economic and social reality in the country.
REPEALED. (2)
Art. 153.-WHEN THE UPDATE AS REFERRED TO IN THE PREVIOUS ARTICLE CONSISTS OF ADJUSTMENTS OR ADJUSTMENTS RESULTING IN THE INCREASE IN TAXES, THE SECOND AND THIRD SUBPARAGRAPHS OF ARTICLE 130 SHALL BE AS LAID DOWN IN ARTICLE 130. (2)
Art. 154.-The Primary and Secondary Units of the Central Government, as well as the Autonomous Institutions including CEL and ANTEL shall incorporate into their respective annual budgets the corresponding allocations for the payment of the services
subhead]of Finance and the Autonomous Institutions are empowered to make up their own initiative the credit reserves that correspond to these allocations, and to the Court of Auditors of the Republic to monitor their compliance.
The Secretariat of State and Autonomous Institutions is authorized to hear the opinion of the Salvadoran Municipal Development Institute and the Court of Auditors of the Republic, establish, when they consider it appropriate, other systems or procedures to facilitate the payment of the aforementioned services.
FINAL TITLE TRANSITIONAL PROVISIONS, REPEAL AND VALIDITY OF LAW
CHAPTER I
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
39
___________________________________________________________________ LEGISLATIVE INDEX
TRANSIENT PROVISIONS
RULES APPLICABLE TO VIOLATIONS AND PENALTIES
Art. 155.-The rules on contraventions and penalties of this Law shall not apply to the unlawful actions or omissions that have occurred prior to their validity, which shall be governed by the respective Municipal Arbitration Fees and the Code. Municipal, in force at the time of such violations, except that the new provisions favor the offender.
PENDING PROCEDURES
Art. 156.-The administrative procedures in matters of municipal taxation that are pending at the time of entry into force of this Law, will continue to be processed in accordance with the norms established in the Tariffs of Municipal corresponding, and in what is not intended, in those of the Municipal Code.
PROVISIONS GOVERNING THE PRESCRIPTION
Art. 157.-The prescription initiated in accordance with previous laws, and which has not been completed upon entry into force of this Law, will be governed by those.
UPDATE OF MUNICIPAL ARBITRATION FEES WITH THIS LAW
Art. 158.-The Municipalities of the Republic pursuant to this Law, shall update their tax rates on the basis of the provisions of Articles 126 and 127, as regards taxes, and according to the second and third points of the article 130, in what corresponds to rate.
REPEALED PARAGRAPH. (1) (2)
REPEALED PARAGRAPH. (2)
The ordinances concerning the special contributions shall be issued on the occasion of the decision to carry out the public works or special activities of the Municipality, taking into account the limits laid down in the second indent of Article 146 of this Act.
Art. 159.-As long as the laws and ordinances for the creation of municipal taxes to be issued in accordance with this Law do not take effect, the Municipalities will apply their current Municipal Arbitration Rates, and with respect to the fees for the services referred to in Article 131 of this Law, the tariff set out in Decree Number 519 of December 5, 1980, published in Official Journal Number 230, Volume 260 of the same date.
CHAPTER II REPEAL
Art. 160.-The provisions of this Law shall prevail over any other that would be contrary to them.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
40
___________________________________________________________________ LEGISLATIVE INDEX
CHAPTER III VALIDITY
Art. 161.-This General Law shall 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 seventeenth day of the month of October of a thousand nine hundred and ninety-one.
Luis Roberto Angulo Samayoa, President.
Ciro Cruz Zepeda Peña, Ruben Ignacio Zamora Rivas, Vice President. Vice President.
Mercedes Gloria Salguero Gross, Vice President.
René Flores Aquino, Ernesto Taufik Kury Asprides, Secretary. Secretary.
Raul Antonio Peña Flores, Secretary.
CASA PRESIDENTIAL: San Salvador, five days in the month of December, one thousand nine hundred and ninety-one.
PUBESQUIESE,
ALFREDO FÉLIX CRISTIANI BURKARD, President of the Republic.
Jorge Martinez Menéndez, Deputy Minister of Interior.
Charged with the Ministerial Office.
D. O. NO 242 TOMO NO 313 DATE: 21 December 1991.
REFORMS:
(1) D.L. Nº 191, FEBRUARY 27, 1992; D.O. NO 50, T. 314, MARCH 13, 1992.
(2) D.L. Nº 591, 7 JULY 1993;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
41
___________________________________________________________________ LEGISLATIVE INDEX
D.O. Nº 135, T. 320, JULY 19, 1993.
(3) D.L. NO. 74, JULY 17, 2003; D.O. NO. 149, T. 360, AUGUST 15, 2003.
(4) D.L. NO 925, DECEMBER 20, 2005; D.O. NO. 26, T. 370, FEBRUARY 7, 2006.
AUTHENTIC INTERPRETATION :
D.L. NO 963, FEBRUARY 15, 2006; D.O. NO 49, T. 370, MARCH 10, 2006. (Art. 51)
OBSERVED DECREE:
D.L. No. 276, FEBRUARY 11, 2010, D.O., T., DE, 2010.
UNCONSTITUTIONALITY:
THE CONSTITUTIONAL CHAMBER OF THE SUPREME COURT OF JUSTICE, BY RESOLUTION 120-2007/123-2007, DECLARED UNCONSTITUTIONAL ART. 119 ORD. 2ND. AND 3RD. OF THIS LAW; FOR VIOLATION OF THE ARTS. 2, 11 AND 144 CN., DUE TO THE RESTRICTION OF THE RIGHT TO APPEAL AND TO THE RIGHT OF DEFENSE, AS A CONSEQUENCE IN THE EXECUTIVE JUDGMENTS FOR THE COLLECTION OF A MUNICIPAL TAX CREDIT, IN RESPECT OF THE EXCEPTIONS AND THE APPEAL OF APPEAL AND WILL BE GOVERNED BY THE LAW COMUN. (ROM/29/10/12)
LM/ngcl 27-03/06
