Accounting & Tax in El Salvador
Stay current on DGII's ISR, IVA, and DTE electronic invoicing requirements year-round, so your Salvadoran S.A. de C.V. never falls out of compliance.
Annual Return Window
March-May (by NIT digit)
Tax ID
NIT
Primary Registry
DGII
Accounting & Tax in El Salvador: What You Need to Know
A Salvadoran S.A. de C.V. pays flat ISR rates on net taxable income, 25% up to $150,000 and 30% above, with a monthly pago a cuenta of 1.75% of gross revenue credited against the annual liability, and the annual ISR return staggered by the last digit of the NIT across March, April, and May. IVA runs at 13%, filed monthly via Form F-07 within the first 10 business days of the following month, required even with zero sales. DTE electronic invoicing becomes mandatory for every taxpayer by May 15, 2026, with a further compliance update due December 1, 2026. Legalized accounting books, the Diario, Mayor, and auxiliary books, are required under a formal accounting regime, and related-party transactions with a foreign parent above $571,428.57 a year trigger a transfer pricing informe (Form F-982) backed by a full Transfer Pricing Study. A mandatory external fiscal audit also kicks in once total assets or annual income cross defined thresholds, a bar a newly capitalized foreign subsidiary can reach faster than expected.
Key Requirements
Flat ISR rates on net taxable income, 25% up to $150,000 and 30% above, with a monthly pago a cuenta of 1.75% of gross revenue credited against the annual liability
Annual ISR return staggered by the last digit of the NIT (endings 1-3 due March 31, 4-6 April 30, 7-9 May 31)
13% IVA, filed monthly via Form F-07 within the first 10 business days of the following month, required even with zero sales
DTE (electronic invoicing) mandatory for all taxpayers by May 15, 2026, with a further compliance update (Normativa V.2.0) mandatory from December 1, 2026
Legalized accounting books (Diario, Mayor, and auxiliary books) required under a formal accounting regime, with transfer-pricing-related records specifically retained 10 years
Transfer pricing informe (Form F-982) once related-party operations reach $571,428.57 a year, filed within 3 months of fiscal year-end, backed by a full Transfer Pricing Study kept on file
Common Challenges
Mandatory external audit thresholds are easy for a new subsidiary to cross
A fiscal audit (Auditor Fiscal plus Dictamen Fiscal) is automatically required once total assets exceed $1,142,857.14 or annual income exceeds $571,428.57. A newly capitalized foreign subsidiary can cross either threshold faster than expected, and the auditor needs to be appointed well before year-end, not after.
Municipal tax runs on its own track, based on declared assets
Separate from DGII, municipal tax requires an annual Balance General Municipal, signed by an external auditor where applicable, filed to the municipality where the company operates. It is easy to treat this as a formality when it's actually a distinct filing with its own numbers.
Matrícula de Comercio renewal is asset-driven, not a rubber stamp
Renewal fees scale with total declared assets, and late renewal triggers surcharges in escalating bands within a 90-day grace window. A lapsed matrícula can jeopardize the company's legal standing to invoice or contract.
How NavviPal Helps
Monthly F-07 (IVA) and F-14 (pago a cuenta and withholdings) filings, plus the annual ISR return, handled on their staggered deadlines
DTE electronic invoicing compliance tracked through each 2025-2026 rollout phase, including the December 2026 update
Transfer pricing informe (Form F-982) and supporting study prepared for related-party transactions with the foreign parent
Matrícula de Comercio renewal and the municipal Balance General filed on schedule, so the company's legal standing never lapses
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