Transfer pricing in El Salvador

Transfer pricing in El Salvador at a glance

Regulation Type National regulations
Are there specific transfer pricing regulations? Yes
Submission deadline N/A
Submission deadline upon request Directly
Annual update required Yes
Official language requirements Spanish
Potential impact of penalties N/A


Salvadorian tax law

Rules for transfer pricing in El Salvador are based upon:

  • Salvadorian Tax Code Sections 62-A, 124-A, 135-f), 147-e), 199-A, 199-B, 199-C, and 199-D.


El Salvador is not an OECD member, but in it’s transfer pricing regulations reference is made to the OECD Transfer Pricing Guidelines.


Accepted methods

Accepted methods are:

  • The market price method
  • The comparable uncontrolled price method
  • The resale price method
  • The cost plus method
  • The profit split method
  • The transactional net margin method

Priority of methods

Rules for transfer pricing in El Salvador prescribe that a taxpayer should firstly investigate the opportunity to apply the market price method (this method was established by the Salvadorian Tax Code and it is not an OECD method). When the market price method can’t be used a taxpayer should apply the best method of the OECD prescribed methods.

Documentation requirements

Information that should be included in the documentation:

The documentation requirements in El Salvador are not very explicitly set out, however, it is clear that documentation should include the following information:

  • information about the taxpayer and its multinational group should be included
  • a functional analysis
  • criteria for selection of comparables
  • applicable methodology
  • supporting data and information that demonstrate that its intercompany transactions meet the arm’s length principle test


Rules for transfer pricing in El Salvador prescribe that all documentation should be submitted in Spanish. 

Requirements to prepare documentation annually

In El Salvador a taxpayer is obliged to update it’s transfer pricing documentation annually.

Submission deadline upon request by tax authorities

Documentation should be submitted directly if requested by the tax authorities.

Advanced Pricing Agreements


Rules for transfer pricing in El Salvador do not provide for the option to obtain an Advanced Pricing Agreement.


Not applicable.


Rules for transfer pricing in El Salvador do not provide for any specific transfer pricing penalties, meaning that ordinary tax penalties apply.