El Salvador’s Legislative Assembly has approved a comprehensive 2026 tax amnesty law designed to offer sweeping financial relief to taxpayers, motorists, and business owners. The temporary measure grants 100% forgiveness on all accrued fines, interest, and surcharges for outstanding debts owed to the national government. Eligible obligations include debts accumulated through September 30, 2026, covering internal taxes like income tax and VAT, customs tariffs, public administration penalties, and pending traffic tickets.

The relief program applies broadly to individuals and corporations, including those currently under audit, facing administrative appeals, or dealing with judicial collection proceedings. Taxpayers who have omitted required filings, underreported income, or failed to remit withheld taxes can regularize their status without penalties. “This law provides a crucial window for citizens and members of the Salvadoran diaspora to settle their financial standing and start with a clean slate,” state officials emphasized during the measure’s introduction.

To take advantage of the amnesty, eligible debtors must file any missing tax returns or customs documentation and submit their application before the strict deadline of December 11, 2026. For those with active administrative or legal disputes, the procedure requires formally withdrawing active appeals to certify the net debt amount.

The government offers two settlement options: a single lump-sum payment or a flexible 9-month installment plan. Under the payment plan, taxpayers make a 10% down payment upon approval, followed by eight equal monthly installments. However, authorities caution that missing scheduled payments will immediately revoke all benefits, reinstating original penalties and interest on the remaining balance.