Transfer pricing studies in El Salvador
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Transfer pricing studies in El Salvador

Transfer Pricing rules are fundamentally based on the Arm’s Length Principle, articulated in art. 9 of the OECD Model Tax Convention. This principle is pivotal for bilateral and multilateral tax treaties to avoid double taxation, reiterated in point 1.6 of the OECD’s “Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.” The Arm’s Length Principle…

Consortium Legal recognized as “Latin America: Professional Development Firm of the Year”
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Consortium Legal recognized as “Latin America: Professional Development Firm of the Year”

On the evening of Thursday, June 20, the Legal Benchmarking Group celebrated the Social Impact Awards 2024, where Consortium Legal was recognized as “Latin America: Professional Development Firm of the Year.” “Inclusion in this list highlights the significant progress law firms have made in building a more diverse and inclusive legal profession, as well as…

Key Aspects of the obligation to maintain inventory control records in El Salvador
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Key Aspects of the obligation to maintain inventory control records in El Salvador

Taxpayer obligations regarding inventory control are essential to ensure transparency and accuracy in the recording and valuation of tangible personal property. According to art. 142 of the Tax Code, this obligation applies to taxpayers who transfer tangible personal property, requiring them to maintain clear and detailed records of the movement, valuation, and description of their…

Change of name and/or surname due to abandonment in El Salvador
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Change of name and/or surname due to abandonment in El Salvador

On February 18, 2022, the Constitutional Chamber of the Supreme Court of Justice of El Salvador – hereinafter referred to as “SCN” – issued the judgment of the unconstitutionality process with reference 33-2016/195-2016, which brought to light two current debates in Family Law in general. These debates concern the possibility for an individual to change…

Consortium is recognized for its excellence and innovation at the IFLR Americas Awards
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Consortium is recognized for its excellence and innovation at the IFLR Americas Awards

The legal directory International Financial Law Review (IFLR) recognized Consortium Legal with 4 awards at the annual gala held this Wednesday, May 15 in New York City, United States. The event brought together the continent’s best law firms to highlight their work on the most innovative cross-border transactions of 2023, their teams, and participating lawyers….

Requirements to maintain financial statements in El Salvador
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Requirements to maintain financial statements in El Salvador

Art. 283 of the Commercial Code (CCom) stipulates that the balance sheet, income statement, and statement of changes in equity must be concluded within an unextendable period of three months from the closure of the fiscal year. These documents will be the responsibility of the sole administrator or the board of directors and must be…

The transformative role of CSR in the fight against money laundering and asset misappropriation
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The transformative role of CSR in the fight against money laundering and asset misappropriation

Money laundering is an illicit activity that affects social and economic structures, resulting in devastating impacts on society. However, in the quest to diminish it through prevention, a powerful and transformative ally emerges: Corporate Social Responsibility (CSR). CSR is grounded in a philosophy of corporate management that promotes organizations’ commitment to sustainable development. This commitment…

Limits to flexibility in terms of work schedules
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Limits to flexibility in terms of work schedules

More and more, the labor market is demanding flexible schedules that adapt to the needs of companies in their effort to be more competitive. However, the existence of labor protection shields that limit the number of hours that should constitute an ordinary working day is a common denominator in Central American labor laws, and, in…

Artificial Intelligence and modernization in public administration in El Salvador
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Artificial Intelligence and modernization in public administration in El Salvador

Artificial Intelligence (AI) occupies a priority position in the modernization of some State institutions in El Salvador. Undoubtedly, Artificial Intelligence will allow us to receive higher-quality services in less time. Recently, to modernize public services in areas such as healthcare, education, and administrative procedures with the State, Google opened offices in the city of San…

Electronic Submission for Qualifying Foreign Institutions: Income Tax Law, VAT Law, and Tax Code
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Electronic Submission for Qualifying Foreign Institutions: Income Tax Law, VAT Law, and Tax Code

This year, the modification of the Instructions for Qualifying Institutions Domiciled Abroad in the context of the Income Tax Law, Value Added Tax Law, and Tax Code came into effect. This instruction is jointly developed and reviewed by the Central Reserve Bank and the General Directorate of Internal Revenue. What is the purpose of this…

Fintech Laws in El Salvador
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Fintech Laws in El Salvador

Although the Fintech ecosystem is growing in El Salvador, following the global trend, there is still no specific legal framework for it. The absence of specific regulation has led these activities to develop within the free market, respecting the general financial regulations established for traditional financial participants. However, this has generated uncertainty for investors and…

Profits and returns from abroad will be non-taxable income in El Salvador
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Profits and returns from abroad will be non-taxable income in El Salvador

On March 12, 2024, the Legislative Assembly of El Salvador approved an amendment to the Income Tax Law (LISR), by adding a numeral 4) to Article 3 of the Law. The amended article regulates the cases of non-taxable income, and to this effect, the new numeral establishes the following: “Income for this Law does not…