The Monthly Income Tax Advance Payment
How it works
- The base is gross revenue accrued in the month, not profit.
- The return and payment are due within ten working days after the end of each calendar month.
- Public and private legal entities resident for tax purposes pay it. Farming and cattle businesses are excluded.
- At the year end the payments are applied against the income tax on the annual return, filed by 30 April.
Source: PwC Worldwide Tax Summaries: El Salvador, taxes on corporate income; PwC Worldwide Tax Summaries: El Salvador, tax administration1,2
Figures checked November 2026. A guide only, not tax, legal or financial advice.
Sources for the calculator
Worked example
A company with gross revenue of USD 100,000 in March pays USD 1,750 as its advance payment for March, within the first ten working days of April. A business with a low margin can therefore pay more in advance than its final income tax; plan cash flow with an accountant.1,2
Frequently Asked Questions
What is the pago a cuenta in El Salvador?
It is the monthly income tax advance payment: companies resident in El Salvador pay 1.75% of the gross revenue accrued in the month, credited against the annual income tax.
When is the advance payment due?
The return and payment are due within ten working days after the end of each calendar month.
How much is the advance payment on USD 100,000 of revenue?
A company with gross revenue of USD 100,000 in a month pays USD 1,750 as its advance payment for that month.
Sources
- PwC Worldwide Tax Summaries: El Salvador, taxes on corporate income
- PwC Worldwide Tax Summaries: El Salvador, tax administration
Figures checked 8 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
