El Salvador has gazetted Legislative Decree Number 969, exempting all income obtained outside of El Salvador from income tax from 22 March 2024. Until now, tax has been payable on returns from shares, other securities and other financial instruments abroad and capital gains arising from the transfer of such instruments.
Tax has also been payable on interest from foreign bank accounts and interest on loans granted from El Salvador to subjects located outside the jurisdiction. The exemption applies regardless of whether the income is repatriated, returning the country to a purely territorial tax system.
News Source：【Arias Law 2024/03/22】