#CostaRica 🇨🇷 #BDS_LaborAlert: New Income Tax Brackets and Tax Credits to Take Effect on January 1, 2025
In accordance with Decree No. 44772-H, published in Item No. 195 to Official Gazette No. 227 on...
The President of El Salvador, Nayib Bukele, announced on Tuesday that he submitted a proposal to the Legislative Assembly to expand the income tax exemption, benefiting individuals who receive monthly salaries of up to $550.
Currently, the law provides that income under $472 is exempt from this tax. The new initiative seeks to raise that threshold to $550, which would represent additional tax relief for lower-income sectors, in a context marked by inflation and rising living costs.
According to the President, in addition to directly benefiting workers, the proposal may encourage salary increases at lower wage levels, even above the minimum wage, as a result of the incentive effect of this tax relief.
The measure will be reviewed by the Legislative Assembly, where the ruling party Nuevas Ideas and its allies hold the necessary votes for its approval.
Please contact us if you have questions or need assistance regarding this or other labor-related matters.
