El Salvador

Ease of Doing Business in

El Salvador

This page summarizes Doing Business 2013 data for El Salvador. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Lower middle income
Population 6,227,491
GNI Per Capita (US$) 3,480
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
113 111 down -2

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
58.1 58.2 down -0.1
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 139 135 up -4
Dealing with Construction Permits 146 143 up -3
Getting Electricity 131 126 up -5
Registering Property 56 55 up -1
Getting Credit 53 52 up -1
Protecting Investors 169 167 up -2
Paying Taxes 153 148 up -5
Trading Across Borders 80 72 up -8
Enforcing Contracts 71 67 up -4
Resolving Insolvency 89 92 up 3

Economy Profile

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Paying Taxes

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This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 153 DB 2012 Rank 148 Change in Rank down-5
DB 2013 DTF** (% points) 53.9 DB 2012 DTF** (% points) 53.9 Improvement in DTF** (% points) 0.0
Indicator El Salvador Latin America & Caribbean OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

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Payments (number per year)
53 30 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

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Time (hours per year)
320 367 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

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Profit tax (%)
17.0 21.5 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

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Labor tax and contributions (%)
17.2 14.4 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

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Other taxes (%)
0.7 11.3 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Total tax rate (% profit)
35.0 47.2 42.7
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 13 128 25% taxable profit 16.5
Employer paid - Social security contributions 12 96 8% gross salaries 8.5
Employer paid - Pension fund contributions (AFP) 0 paid jointly 7% gross salaries 7.6
Employer paid - Training tax (INSAFORP) 12 1% gross salaries 1.1
Capital gains tax 0 paid jointly 10% capital gains 0.5
Business license tax 1 fixed fee 0.2
Fuel tax 1 20c per gallon fuel consumption 0.2
Vehicle taxes 1 fixed fee 0.1
Municipal tax 1 various rates total assets 0.1
Value added tax (VAT) 12 96 13% value added 0 not included
Totals: 53 320 35.0

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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