Tax evasion in El Salvador has dropped dramatically in recent years—from nearly $2 billion to just $400,000—according to Marvin Sorto, Director General of Internal Revenue at the Ministry of Finance. Speaking during an interview on Diálogo 21, Sorto stated that the Salvadoran government has attacked evasion “head-on,” significantly reducing illegal practices that drain national revenue.
“Based on our baseline, tax evasion was estimated at around $2 billion. But thanks to direct action and strengthened oversight, we estimate it is now around $400,000,” Sorto explained.
The Ministry of Finance continues to expand its efforts to widen the tax base and intensify fiscal supervision. In October 2024, the Ministry reported that more than $1.9 billion had been recovered through tax evasion cases and amnesty processes since 2019.
At the time, Finance Minister Jerson Posada revealed that 211 cases of suspected tax crimes had been filed with the Attorney General’s Office, totaling $225.6 million.
Still, a recent Oxfam study published in March suggested that El Salvador could be losing up to $1.85 billion annually due to tax evasion and abuse.
Sorto emphasized the seriousness of tax offenses, noting that submitting false data, omitting income, or failing to file an income tax return for 2024 may constitute criminal offenses under Salvadoran law. “Not filing your tax return or evading tax responsibilities is not worth the risk,” he warned.
To facilitate tax compliance, the Ministry has extended office hours across its 17 express centers, which now operate daily until 5:00 p.m. On Saturday, April 26, they will open until noon, and on April 30, operations will extend to midnight.
The government aims to collect $635 million from 836,000 income tax filings during fiscal year 2024.
