Orbitax subscribers can now easily follow the latest COVID-19-related tax measures being implemented worldwide. New to Orbitax? Create a free account to access your dashboard and latest tax news.
News Share

The Tax Hub

Daily Tax Newsletter

El Salvador

Responsive image

El Salvador Publishes Updated Transfer Pricing Guidelines

El Salvador's Ministry of Finance has announced the publication of updated transfer pricing guidelines (DG-001/2018), which replace the prior guidelines issued in 2012. The guidelines cover:

  • Application of the transfer pricing rules for transactions with related parties and parties located in jurisdictions with preferential tax regimes or low or no taxation (tax havens);
  • Comparability analysis and adjustments;
  • Price determination, including methods and acceptable ranges;
  • Steps for the application of selected methods;
  • Presentation of the transfer pricing report;
  • Maintenance of documentation, information, and proof;
  • Tax treatment of transactions with related parties and tax havens with respect to withholdings and non-deductible costs and expenses;
  • Obligations of auditors in respect of transactions with related parties and tax haven residents; and
  • Examples of the application of the rules (annex).

Some of the main aspects of the update include:

  • Expanded guidance with respect to transactions with tax haven residents;
  • Explicit reference to following the OECD transfer pricing guidelines;
  • New guidance on comparability analysis adjustments and adjustment information to be included as part of the transfer pricing documentation;
  • Reference to the five standard transfer pricing methods in accordance with OECD guidelines (most appropriate method to be used), with no mention of El Salvador's market price method (appears to mean this method no longer applicable, but unconfirmed);
  • New guidance on acceptable arm's length price and the interquartile range, with the first to third quartile accepted;
  • Greater obligations on fiscal auditors regarding the disclosure and support of an opinion that a taxpayer's transfer pricing obligations are met; and
  • Additional and expanded examples in the annex to the guidelines.

Click the following link for the 2018 guidelines (Spanish language).

Powerful Tax Tools


FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.


Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.


Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.


Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.


Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.



Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.


Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.


Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.


Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.


Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.


Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.


Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.


VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.


NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.


Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.


Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More