Responsibility of Administrators Regarding Audit Findings in El Salvador
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Responsibility of Administrators Regarding Audit Findings in El Salvador

Among the various responsibilities concerning the governance of the entity (executives of the board of directors, owner, manager, among others) is management aimed at creating value for the shareholder, as they expect a return on their investment. The shareholder would expect to see the value of their investment in various financial indicators, including the profit…

Extension of deadline for the importation of used vehicles in El Salvador
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Extension of deadline for the importation of used vehicles in El Salvador

Recently, the General Directorate of Customs (DGA), under the provisions of art 440 of the Regulation of the Uniform Central American Customs Code (RECAUCA), has modified the period of stay for vehicles owned by foreign tourists, Salvadorans residing abroad, and Salvadoran students residing abroad. Until January 15, 2024, all foreign tourists, Salvadorans residing abroad, and…

Tax Trends in Central America 2023
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Tax Trends in Central America 2023

The Central American region has been characterized by a very dynamic economic, political, and social development, which has permeated the design of fiscal policies in each country. Under this reality, the tax component is consolidated as one of the most important elements of analysis for those who do business in the region, given the development…

Simplified joint stock companies in El Salvador
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Simplified joint stock companies in El Salvador

In the plenary session of December 6, 2023, the Legislative Assembly of El Salvador approved a series of new reforms to the Commercial Code to implement certain provisions with innovative elements to facilitate business in the country, boost the economy, and contribute to economic growth. All of this is achieved through the modernization of commercial…

The electronic submission of documents for the qualification process of institutions domiciled abroad has been enabled
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The electronic submission of documents for the qualification process of institutions domiciled abroad has been enabled

This year saw the enforcement of modifications to the Instruction for qualifying institutions domiciled abroad, within the framework of the Income Tax Law, the Law on the Tax on the Transfer of Movable Property and the Provision of Services, and the Tax Code. This instruction is jointly developed and reviewed by the Central Reserve Bank…

Required documents for traveling from El Salvador abroad
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Required documents for traveling from El Salvador abroad

Salvadorans of legal age Salvadorans, like all foreigners, require certain permits to enter and exit the country. For air travel, they only need their valid passport, but for land entry, their unique identity document is sufficient. However, when leaving El Salvador, in addition to a valid passport, they must verify, depending on their destination, if…

The appeal resource in tax matters in El Salvador
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The appeal resource in tax matters in El Salvador

The Salvadoran Tax Code, in its art. 188, stipulates that, regarding resources, one must adhere to the provisions of the Law on the Organization and Functioning of the Internal Revenue and Customs Appeals Tribunal. Being competent to hear the appeals filed by taxpayers before the Internal Revenue and Customs Appeals Tribunal (TAIIA), concerning administrative acts…

Carbon credits and fiscal incentives
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Carbon credits and fiscal incentives

I- Background of Carbon Credits: Carbon Credits have their origins in the Kyoto Protocol of 1997, where they were proposed as a mechanism to combat climate change. The primary focus was on preventing, capturing, or reducing Greenhouse Gas (GHG) emissions. This is achieved through the conservation or reforestation of long-term forests, equivalent to not emitting…

November 25th, International Day Against Violence Against Women
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November 25th, International Day Against Violence Against Women

The United Nations defines violence against women as “any act of gender-based violence that results in, or is likely to result in, physical, sexual or psychological harm to women, including threats of such acts, coercion or arbitrary deprivation of liberty, whether occurring in public or in private life.” “The World Health Organization” has declared gender-based…

Protecting the right to informational self-determination in banking matters in Central America and the interpretative debate on its limits in Costa Rica.
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Protecting the right to informational self-determination in banking matters in Central America and the interpretative debate on its limits in Costa Rica.

I- Introduction In November 2022, the Central Bank of Costa Rica (“BCCR“) requested from the General Superintendence of Financial Institutions (“SUGEF“) access “to the integral information of all credit operations that the supervised financial intermediaries submit, including necessarily the identification number (physical, legal, dimex, or others), to the Information Management Division of the Central Bank…

Consortium Legal received the prestigious recognition as “Best Firm in Central America” in the Chambers Awards 2023.
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Consortium Legal received the prestigious recognition as “Best Firm in Central America” in the Chambers Awards 2023.

On the night of Friday, November 17, the international directory Chambers & Partners held a new edition of the annual awards ceremony “Chambers Latin America Awards for Excellence” in Miami, United States. During the gala, Consortium Legal was recognized for the thirteenth year as “Best Firm of the Year in Central America”, an award received…

What are the new reforms to the free trade zone law in El Salvador about?
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What are the new reforms to the free trade zone law in El Salvador about?

The enormous effort that the Salvadoran State has been making to encourage investment in the country must be acknowledged. As an example of this, we can mention the recent reforms to the Law of Industrial and Commercialization Free Zones (LZFIC), which are in force since September 2023. It is worth asking what these reforms are…