A company incorporated in El Salvador is a resident entity in the country for tax purposes and subject to CIT on Salvadorian-source income. Also, branches from foreign companies authorised in El Salvador and entities operating as a permanent establishment (PE) are considered resident entities for tax purposes and subject to CIT on Salvadorian-source income.
The general rule for the determination of the corporate domicile is that it will be the one established on the incorporation document.
A foreign resident creates a PE in El Salvador when corporate activities are performed through one of the following:
Last Reviewed - 31 January 2019