EL SALVADOR · TAXES
Key Facts
- —What is happening El Salvador’s Legislative Assembly voted unanimously, with all 60 votes, on Wednesday, 21 October, for a law that waives interest and surcharges on overdue taxes, customs debts and fines.
- —Why it matters Debtors must still pay the original tax, but obligations due through 30 September 2026 can be settled without penalties until Friday, 11 December.
- —The numbers Payment plans need 10% down plus eight monthly payments, so a US$1,000 debt would mean US$100 first and US$112.50 a month, while the 2025 amnesty reached 56,195 taxpayers.
- —Who is who The Finance Ministry, known as Hacienda, proposed the law, its tax directorate (DGII) and customs directorate (DGA) collect the debts, and the 60-member Assembly passed it.
- —What to watch Publication of the decree in the official gazette, on which the start of the benefits depends, and the Friday, 11 December deadline for filing and paying.
- —What it means for you US exporters to El Salvador and Salvadoran-Americans with unpaid tax or customs bills there may clear them without interest or surcharges, if they qualify.
El Salvador’s Assembly unanimously approved a tax amnesty on 21 October that waives interest and surcharges on debts through 30 September. Taxpayers have until Friday, 11 December to use it.
The El Salvador tax amnesty won all 60 votes in the Legislative Assembly on Wednesday, 21 October, Diario El Mundo reported. The law waives interest and surcharges on overdue taxes, customs debts and fines.
Anyone owing money to the Finance Ministry through 30 September can settle without penalties until Friday, 11 December. That matters to US exporters, Salvadoran-American business owners and investors with tax bills in the country.
What the El Salvador Tax Amnesty Covers
The measure is a special, temporary law that eases voluntary payment of tax, customs, traffic and other fines. El Diario de Hoy said the full Assembly approved it in plenary session number 131.
It covers debts to the domestic tax directorate (DGII) and the customs directorate (DGA). Both are units of the Finance Ministry, known as Hacienda.
Eligible obligations are those due through 30 September 2026, Diario El Mundo reported. They include income tax, value-added tax (VAT), real estate transfer tax and import duties.
Withholdings and advance payments that were never remitted, or were miscalculated, also qualify. So do customs declarations whose deadline to file or settle has already passed.
Traffic fines and penalties set by public bodies are included, but not municipal fines. Diario El Mundo and El Diario de Hoy both say so.
Cases already in the system can use the law, including those before the tax and customs appeals tribunal. Diario El Mundo said that also covers administrative courts, Constitutional Chamber appeals, prosecutors and court collection.
How the Payment Plans Work
The amnesty does not erase the original tax. Debtors must pay the principal, while interest and surcharges are waived, El Diario de Hoy and elsalvador.com explained.
Traffic fines work the same way. The fine itself stays payable, and only interest and surcharges are waived, El Diario de Hoy said.
Taxpayers first file original or amended returns with the DGII or the DGA. They then pay at the Treasury directorate or at authorised banks, Diario El Mundo reported.
Those who cannot pay at once can ask the Treasury for an instalment plan. It requires 10% down and eight monthly payments after that.
El Diario de Hoy gave an example: a US$1,000 debt would mean US$100 up front and eight payments of US$112.50. El Diario de Hoy and elsalvador.com both call the arithmetic illustrative, not an official calculation.
Missing a payment ends the arrangement. The waived charges are then reactivated on the unpaid balance, Diario El Mundo said.
A Repeat of the 2025 Relief
A similar law took effect on 16 October 2025 and ran for 60 days, to 14 December 2025, Diario El Mundo reported. The new window ends 51 days after this week’s vote.
That earlier amnesty drew 56,195 taxpayers, according to figures shown during the Assembly’s review, reported by elsalvador.com. Small taxpayers supplied 71% of the money collected, medium ones 15% and large ones 14%.
Hacienda’s bill reached the full Assembly on Wednesday, 14 October, Diario El Mundo reported the next day. The finance committee backed it on Monday, 19 October, El Diario de Hoy said.
What It Means for US Readers
El Salvador uses the US dollar, so every amount in the law and in the reports is already in US$. No exchange-rate conversion is needed.
US companies that ship goods to El Salvador may clear overdue import duties without surcharges. The law covers import taxes and customs declarations whose deadline has passed, Diario El Mundo said.
Salvadoran-Americans who own property or run businesses there may also qualify, because income tax and real estate transfer tax debts are covered. The reports do not say how the rules apply to non-residents.
Background is in earlier reports on the early-release plan for gang collaborators, the Haiti rescue effort and El Salvador’s export forecast. The El Salvador news hub and the geopolitics guide add context.
What Is Not Known
It is not known when the decree will be published in the official gazette. El Diario de Hoy says the benefits depend on the decree entering into force.
The reports give no estimate of the revenue Hacienda expects. They also do not say whether non-residents face different rules.
The Assembly’s own text and a Hacienda statement could not be opened. The details rest on three Salvadoran outlets, which agree on the vote, the deadline and the payment plan.
What Comes Next
The 11 December deadline is the date to watch, along with the gazette notice. Taxpayers can check debts on Hacienda’s online services portal.
Checking a debt is not an application for the amnesty, El Diario de Hoy and elsalvador.com warned. Filing and payment still have to follow Hacienda’s procedure.
Frequently Asked Questions
What is the El Salvador tax amnesty?
It is a law passed on 21 October that waives interest and surcharges on overdue taxes, customs debts and certain fines. The original tax must still be paid.
When does the amnesty end?
The deadline is Friday, 11 December 2026. It covers obligations due through 30 September 2026.
How do the payment plans work?
Debtors pay 10% up front and then eight monthly payments. If they miss a payment, the waived charges return on the unpaid balance.
Does it cover customs duties?
Yes. The law covers debts to the customs directorate, including import duties and declarations whose deadline has passed.
Are municipal fines included?
No, fines imposed by municipalities are excluded. Diario El Mundo and El Diario de Hoy both report this.
Sources: Diario El Mundo, 21 October; El Diario de Hoy, 21 October; elsalvador.com, 21 October; Diario El Mundo, 15 October; Diario El Mundo, 23 October 2025 (all accessed 22 October 2026).