El Salvador

Corporate - Branch income

Last reviewed - 24 January 2024

In El Salvador, tax rates on branch profits are the same as for domestic corporations. Dividends and profits paid or credited by headquarter (HQ) representatives, affiliates, branches, subsidiaries, agencies, and others not domiciled in El Salvador are subject to 5% withholding tax (WHT) (25% if paid to a tax haven as considered by the Salvadoran tax administration).

The law does not provide separate treatment for administrative offices located in El Salvador.

The general regulations indicate that branches, agencies, and/or establishments permanently operating in the country, with owned or leased installed infrastructure, employing domestic staff, and performing their economic activities in a material and perceptible manner in the country are subject to the same taxes as companies duly incorporated.