Agricultural is El Salvador’s traditional economy, but services and industry employ a greater percent of the workforce in the meantime. Times like natural disasters such as earthquakes and hurricanes, government policies, and official corruption has hampered El Salvador’s economy. Since reduced its dependence on coffee and expanding on diversifying the economy by expanding the manufacturing sector and opening up trade and financial links, the economy of El Salvador gets more stable.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract.
Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in El Salvador. Forward planning is of the essence to optimize costs. El Salvador has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in El Salvador, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in El Salvador, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.