Paying Taxes in El Salvador

The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in El Salvador, as well as measures of administrative burden in paying taxes.

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Tax or mandatory contributionPayments (number)Notes on PaymentsTime (hours)Statutory tax rateTax baseTotal tax rate (% profit)Notes on TTR
Corporate income tax13 12825.0%taxable profits16.5 
Mandatory health contributions0paid jointly -7.5%gross salaries8.5 
Social security contributions12 966.8%gross salaries 7.6 
Other payroll taxes12 -1.0%gross salaries 1.1 
Capital gains tax0paid jointly -10.0%capital gains0.5 
Excise tax (fuel tax)1 -20c per gallonfuel consumption0.3 
Business license tax1 -fixed fee  0.2 
Municipal tax over assets1 -Different rates according to assetstotal assets0.1 
Vehicle taxes1 -fixed fee 0.1 
Value added tax (VAT)12 9613.0%value added not included
Totals:53 320  35.0 


Notes:
Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.