El Salvador removes income taxes for money from abroad

Credit: REUTERS/JOSE CABEZAS

Adds details on the reform, quote from lawmaker

SAN SALVADOR, March 12 (Reuters) - El Salvador's Congress approved on Tuesday a reform to remove income taxes previously imposed on money from abroad, in a move to attract more foreign investment.

Money flows from abroad in forms such as remittances and investments in companies will now be exempt from tax, lawmakers said.

Prior to the reform, incomes equal to or greater than $150,000 had to pay a rate of 30% at the time of entry into the country.

"The initiative aims to stimulate domestic and foreign investment to boost the economy and generate better and more employment opportunities," said lawmaker Suecy Callejas in Congress when defending the reform.

(Reporting by Nelson Renteria; Writing by Valentine Hilaire; Editing by Sarah Morland)

((Valentine.Hilaire@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.