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El Salvador — Orbitax Country Chapters
13.5. Interest and Penalties

El Salvador imposes penalties for late filing of returns, late payment, and incorrect returns or fraud.

The penalties are based upon the tax amount due as follows:

  • 5% if delinquent less than 1 month;
  • 10% if delinquent between 1 and 2 months;
  • 15% if delinquent between 2 and 3 months; and
  • 50% if over 3 months.

The annual interest rate on late tax payments during the period from 1 February 2023 up to 31 July 2023 is 6.35% which can be increased to 10.35% in case the delay in payment of tax is beyond 60 days following the expiration of the due date for the tax obligation.