Salvatore'S New Law Consensus On Processing Export Zones Benefits The Textile Industry

Salvatore's minister of economic affairs, H ctor Dada, said that the new law of Salvatore's export processing zone, which is currently under discussion, will be changed to use incentives to reduce taxes, which is different from the old law, giving incentives directly to exports.

The new export processing zone law will stimulate incentives for investment and create jobs.

Another alternative to the old law is to change the original direct tax exemption into a new progressive tax system.

The "San Salvador metropolitan area act" (AMSS) set by the Salvatore administration is exempt from business tax and municipal tax in the first 15 years for the industry in sac Jing area. It is exempt from 60% business tax and 90% municipal government tax from sixteenth to 25 years, and 75% business tax and municipal tax exemption since twenty-sixth.

Now that the decentralized industry is over concentrated in the capital region of Salvatore, the new law will grant more tax concessions to investors other than sac, such as those outside the area of sac, that is, a 20 year exemption from business tax and municipal tax.

However, investors in Beijing or Beijing still enjoy the exemption from real estate paction tax.

The industries defined by the new law include textile, manufacturing, fishing and liquor making industries, but the cement industry, fuel industry and sucrose content industry have not been included.

For Salvatore investors, the new and old processing zones act as a buffer period for 6 months. After the buffer period, if the original investment company has more than $500 thousand in new investment and offers at least 50 jobs, it will be applicable to the new law, giving the preferential tax exemption from business tax and municipal tax for 20 years.

The existing Salvatore export processing zone law was laid down in 1998. The Salvatore administration will abolish the existing export processing zone law by December 31, 2015, in line with the requirements of the world trade organization.

The draft law on the new export processing zone of Salvatore has not yet been submitted to Salvatore's parliament.

At present, the Salvatore processing export area employs 240 thousand people directly and indirectly.