For non-domiciled companies that have a TIN in El Salvador, and that do not have the status of non-taxpayer, or even having such status, have had Salvadoran source income that would not have been subject to definitive income tax withholdings at the source, they have the obligation to file the annual income tax return, in order to keep it solvent in its formal and material tax obligations.
If the non-domiciled company does not have a NIT in El Salvador, but obtained Salvadoran source income that would not have been subject to definitive income tax withholdings at the source, it is obliged to file the capital gains report together with its corresponding income tax return, for which it must first obtain the NIT, as well as register in the web system of the Ministry of Finance.
Registering with the Ministry of Finance’s web system to file your reports and corresponding returns is necessary if it has not already been done, as it is the only means by which tax reports and returns can currently be formally submitted to the tax administration. If the non-domiciled company has not registered, or having done so in previous years did not remember their credentials, our Firm can guide them on how to obtain the necessary access to the system.
The final date to prepare and file the return, as well as to pay any applicable taxes, is April 30, 2022.
Keeping non-domiciled companies solvent before the tax authorities is important to ensure that there will be no future problems in various transactions that require such solvency, such as the registration of real estate, commercial documents and trademarks before the CNR, or for obtaining credit as principal debtor or guarantor in the financial system.
Our firm, through the Tax Law and Offshore Services practices, is at your disposal to expand or clarify any doubts on the matter, as well as to assist you in the filing of the declaration if so required.