What are payroll taxes in El Salvador?

Personal Income Tax Rate in El Salvador is e to 30.00 percent.

Taxes in El Salvador apply to both employers and employees. Required municipal taxes vary by location, but the corporate tax rate remains fixed at 30%. Personal income taxes should be deducted from employees’ paychecks, as the country uses a Pay As You Earn (PAYE) system.

As an employer, you have to pay social security at a rate of 7.5%, while employees owe 3%. All the revenue you make abroad is subject to a 1.75% tax, and VAT is set at 13%.

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