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El Salvador Wants to Be Like Panama, Chasing Multiple Tax Agreements in Central America

Article Summary:

El Salvador is hoping to lead itself off the black list of tax havens little by little through multiple tax agreements with the rest of Central America and worldwide. El Salvador says, unlike Panama, they are a member of the Central American Integration System which means they can provide unrestricted access to data on taxpayers and tax payments to other Central American countries easier than Panama. If pending legislation is approved for Central America, El Salvador will then seek out agreements with a total of 23 other nations.

Photo Credit: Prensa Grafica

Original Article Text From Prensa Grafica via Google Translate :

Country After Multiple Tax Agreements

The deputies of the Foreign Relations Committee of the Legislative Assembly discussed the request of the executive to sign a document exchange of tax information with the rest of Central America and a large group of countries in the world.

One is an agreement that will facilitate the administration of public finances and customs in Central America, not Panama, can cooperate with each other with access to data on taxpayers and tax payments.

The Salvadoran parliament is unique within the Central American Integration System (SICA) that has not ratified it.

If approved in full Legislature, access to information is valid for five countries in the SICA. MEPs also study a more comprehensive agreement, which will connect the country with 23 other nations for the same type of cooperation.

Daniel German, executive secretary of SICA, explained that the ease of obtaining information from countries in the block can help to combat crimes such as money laundering or unjustified non-payment of taxes.

In fact, explained Carlos Caceres, head of the Ministry of Finance (MoF) of El Salvador , the information obtained with the exchange can be used as evidence in court, especially in case of audit.

In that sense, Caceres said part of the agreement that corresponds to the SICA involves confidentiality, legality, speed and reciprocity in each case. When investigating a taxpayer will be sought only aspects directly related to the issue of taxes, trade and economic activities. “Just general information, not personal stuff,” he said.

In addition, the agreement will promote agility in the process of customs union. The most advanced in the specific topic are El Salvador , Guatemala and Honduras.

The minister also warned that if El Salvador continue delaying the ratification of these agreements could enter the gray list prepared by the Organization for Economic Cooperation and Development (OECD) just because of the lack of transparency.

Panama was one of the countries who made it out little by little from that list, if it was considered a kind of tax haven.

Members Karina Sosa, the FMLN, Francisco Merino, NC, and a member of WIN said they are willing to give assent to the request to vote on ratification in plenary.

Link to Original Article:

From Prensa Grafica

  • stan

    wow people, we need to get this country before
    you break me. i’ve been betting on you
    like seabiscuit. it’s 2012!

  • stan

    i have great expectations for el salvador and not
    loosing hope.

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