Accounting in El Salvador: standards, taxes and GoSoft
Accounting guide for El Salvador: Ministry of Finance (General Directorate of Internal Taxes), IVA 13 %, accounting framework, books, e-invoicing, tax returns and how to set up GoSoft.
Key facts
| Item | Detail |
|---|---|
| Tax authority | Ministry of Finance (General Directorate of Internal Taxes) |
| Currency | USD · US dollar |
| Tax ID | NIT |
| Consumption tax | IVA · 13 % |
| Income tax | Income tax of 30 % (25 % for lower income), with a monthly advance payment of 1.75 % of gross income. |
| Fiscal year | Calendar year (January 1 to December 31). |
| E-invoicing | Electronic Tax Documents (DTE) of the Ministry of Finance. |
Accounting framework
IFRS for SMEs (IASB); public-interest entities apply full IFRS.
Chart of accounts
There is no mandatory chart of accounts: the company defines it according to its framework. GoSoft ships a base chart you can adapt.
Financial statements
In El Salvador the four statements are presented with these names (GoSoft uses them in its reports and PDFs):
- Statement of financial position
- Income statement
- Statement of changes in equity
- Statement of cash flows
Mandatory books and records
VAT purchases and sales books (to taxpayers and to final consumers) besides the accounting books.
Periodic tax returns
Monthly VAT return and monthly return of advance payments and withholdings; annual income tax.
What you need to know
- Large taxpayers withhold 1 % VAT from their suppliers.
Taxes and withholdings in GoSoft
These are the reference taxes and withholdings GoSoft loads for El Salvador. You adjust them in Taxes and withholdings (rate, minimum base and ledger account).
| Code | Name | Type | Applies to | Rate |
|---|---|---|---|---|
IVA13 | VAT 13% | VAT | sales and purchases | 13 % |
RET-IVA | 1% VAT withholding (large taxpayer) | VAT | payments to suppliers (withholding) | 1 % |
RET-RENTA | Income tax withholding · services | Income | payments to suppliers (withholding) | 10 % |
How to set up GoSoft for El Salvador
In My company, choose the country El Salvador and the currency USD.
When you log in again, GoSoft shows Updating the accounting setup for El Salvador: it codes the chart of accounts, loads the country's taxes and checks the settings. It happens only once.
In Chart of accounts → Options, review the coding and download the chart as a PDF for your accountant to approve.
In Financial reports → Taxes and withholdings, confirm the rates and choose the ledger account for each tax.
Record activity (manually or from the modules) and use Tax returns to prepare each period's drafts.
Rates and deadlines change. Before filing, confirm what is current at Ministry of Finance (General Directorate of Internal Taxes) and with your accountant.