Among the changes approved are the following:

• Exclusion of certain foreign source income Article 3 of the Income Tax Law (hereinafter "Income Tax Law") is amended, adding numeral 4) related to exclusions from the concept of income and therefore, all values received in any concept would not be taxed with such tax, obtained abroad or any capital movement, remuneration or emolument, in cash or in kind, whether or not generated by the investment of national or foreign capital, which are nominally obtained or received by individuals, legal entities or entities without legal personality, domiciled or not in the country, from any kind of source abroad.

Taxpayers who obtain taxable income, and at the same time, any of the concepts established in this provision, are excluded from the application of the mechanism for determining the proportion of costs and expenses established in Article 28, final paragraph of the Income Tax Law.

• Repeal of provisions of the Income Tax Law The following provisions of the Income Tax Law are repealed: Article 14-A, sixth, seventh and eighth paragraphs, with respect to income obtained from securities and other financial instruments abroad.

Article 16, paragraph c of the fourth clause, and fifth and seventh clauses, regarding income or results from securities, financial instruments, and derivative contracts, when the risk assumed is located or localized in the salvadoran territory, and regarding non-taxable, exempt or not subject income obtained in another country, by salvadoran taxpayers domiciled in El Salvador, for credits or financing granted to subjects located abroad. Article 27, second, third and fourth paragraphs, regarding income obtained by taxpayers domiciled in El Salvador, for deposits in financial institutions abroad.

Next steps once the Legislative Decree is published in the Official Gazette, it will become effective 8 days after its publication.

Translated by: A.M