Post by Sapphire Capital on Jul 12, 2008 21:16:56 GMT 4
El Salvador
Approval of international services law
As of October 11 2007, Salvadorian Congress approved the international services law. This law will become effective eight days after its publication in the official gazette.
The government's objective is to become an international logistic and distribution services center that would operate within a modern legal framework that responds to international trade tendencies without violating the WTO regulations, which require subsidies for exportation of products to be eliminated as of year 2015, as they are considered unfair competition amongst countries to attract foreign investment. For this reason, the government adopted the international services law, which grants tax incentives for the exportation of services and benefits of this nature would not be required to be eliminated in the future by WTO regulations.
In the same line, the above law regulates tax incentives such as:
* Income tax exemption for the time of the operations in El Salvador for a fifteen-year period.
* Municipal tax exemption for ten years.
* Real estate tax exemption in the acquisition of real estate for services parks or centers.
* Custom duties exemption on the importation of machinery used to render the services authorised under the international services law.
The aforementioned benefits and tax incentives should apply to resident and non-resident companies and individuals whose principal activity is the administration, development or use of services parks or centres that are engaged in the following activities:
* International distribution.
* International operations of logistics.
* International call centres.
* Information technology services.
* Research and development services
* Maritime vessel repair and maintenance.
* Aircrafts repair and maintenance services.
* Business processing services.
* Medical and hospitable services.
* International financial services.
These services are considered as key sectors that should be developed to strengthen El Salvador's economic growth and is expected to generate significant employment opportunities that would require a certain level of managerial and technical expertise within the country.
Approval of international services law
As of October 11 2007, Salvadorian Congress approved the international services law. This law will become effective eight days after its publication in the official gazette.
The government's objective is to become an international logistic and distribution services center that would operate within a modern legal framework that responds to international trade tendencies without violating the WTO regulations, which require subsidies for exportation of products to be eliminated as of year 2015, as they are considered unfair competition amongst countries to attract foreign investment. For this reason, the government adopted the international services law, which grants tax incentives for the exportation of services and benefits of this nature would not be required to be eliminated in the future by WTO regulations.
In the same line, the above law regulates tax incentives such as:
* Income tax exemption for the time of the operations in El Salvador for a fifteen-year period.
* Municipal tax exemption for ten years.
* Real estate tax exemption in the acquisition of real estate for services parks or centers.
* Custom duties exemption on the importation of machinery used to render the services authorised under the international services law.
The aforementioned benefits and tax incentives should apply to resident and non-resident companies and individuals whose principal activity is the administration, development or use of services parks or centres that are engaged in the following activities:
* International distribution.
* International operations of logistics.
* International call centres.
* Information technology services.
* Research and development services
* Maritime vessel repair and maintenance.
* Aircrafts repair and maintenance services.
* Business processing services.
* Medical and hospitable services.
* International financial services.
These services are considered as key sectors that should be developed to strengthen El Salvador's economic growth and is expected to generate significant employment opportunities that would require a certain level of managerial and technical expertise within the country.