ANNOUNCEMENT 23 Dec 2010

In December 2010, the government of El Salvador announced a change in the tax legislation for exporters.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 01 Feb 2011 | Removal date: open ended
Still in force

Tax-based export incentive

On 23 December 2010, El Salvador via Decree 565, announced its decision to eliminate the 6% export drawback rate from 1 February 2011.
This drawback rate was initially established via the 1990 Export Reactivation Law (Decree 460) which enabled firms to apply for tax rebates ("drawbacks") of 6% of the FOB value of manufactured or processed exports shipped outside the Central American Common Market area.