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El Salvador: Withholding tax on income derived by nonresidents from securities traded on Salvadorean stock exchange repealed

Effective as of April 21, 2026

June 18, 2026

The Legislative Assembly of El Salvador on April 9, 2026, issued Decree No. 544, repealing the 3% withholding tax on income derived by nonresident investors from securities transactions conducted through the local stock exchange.

The decree was published in the official gazette on April 13, 2026, and was effective eight days after publication, as of April 21, 2026.


For more information, contact a KPMG tax professional in El Salvador:

Flor Jaime | fjaime@kpmg.com

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