El Salvador and Honduras implement new tax exemption measures

In El Salvador, the Legislative Assembly has approved several tax reforms. One measure allows for the early payment of Christmas bonuses (aguinaldos) starting October 1 and provides an income tax exemption for bonus amounts up to $1,500. These reforms aim to increase financial liquidity for public and private sector workers, retirees, and alimony beneficiaries.

Additionally, El Salvador has implemented a five-year income tax exemption for local artists and creative businesses. Individual artists earning up to $15,000 annually and legal entities earning up to $25,000 are exempt from income tax on their services or art sales. This measure is intended to support the cultural sector and encourage professional reinvestment.

In Honduras, a separate measure allows returning citizens to import up to $150,000 worth of goods—including vehicles, jewelry, and furniture—with tax exemptions. This policy, part of the Special Law for Facilitating the Return of Patrimony, is designed to help returnees, including those without regular migration status in the U.S., rebuild their assets or start productive businesses.