Thursday, 23 November 2023 05:03

Christmas bonuses will be exempt from income tax 2023

Written by editorial staff

The transitory law initiative seeks to increase the purchasing power of salvadorans during this Christmas and year-end season.

Jerson Posada, head of the Ministry of Finance, presented before the Legislative Assembly on november 21st a bill to exonerate from income tax all Christmas bonuses equal or less than $1,500. This way, salvadorans will be able to better plan their expenses for this Christmas and New Year's Eve season, since they will have more purchasing power.

"This measure will benefit close to 700 thousand people (...). In the case of people who receive Christmas bonuses greater than this amount, they will be benefited with exemption up to a maximum of $1,500", said Posada.


Although the calculated impact is around $4.3 million, the minister assures that this will not generate a serious fiscal cost since the returns will be higher after its implementation.

He also said that this decision can be taken thanks to the excellent tax collection results of the current fiscal year.

This proposal is already in the hands of the deputies of the Treasury Commission and it is expected to be approved during the next plenary session on wednesday, november 29.


Translated by: A.M