El Salvador · International tax development
El Salvador approves Türkiye and UAE tax treaties
On 4 November 2026, El Salvador's Legislative Assembly approved ratification decrees for income-tax agreements with Türkiye and the United Arab Emirates; Official Gazette publication and entry into force remain pending.
- Official document:
- Legislative Decrees 705 and 706
- Development date:
- 2026-11-04
Assembly approves two ratification decrees
The Legislative Assembly approved the Türkiye agreement with 58 votes and the UAE convention with 59. Its 2026 decrees register identifies Decree 705 for Türkiye and Decree 706 for the UAE, both issued on 4 November. The same register says material publication in the Official Gazette and entry into force are pending, so the votes do not yet change the tax treatment of cross-border payments.[1][2]
Agreements allocate taxing rights and relief
The agreements were signed in New York on 25 September. The Assembly says both allocate taxing rights by income category, relieve double taxation through a credit for foreign tax and support cooperation against evasion and avoidance. Its summary identifies business profits, dividends, interest, royalties, asset gains, dispute resolution and information exchange under the Türkiye agreement. The UAE agreement addresses income and capital, including hydrocarbons, dividends, interest, royalties, capital gains, pensions and employment income.[1][3][4]
Treaty limits remain unverified
The Turkish Revenue Administration says its agreement limits source-country taxation on dividends, interest, royalties and technical-service fees and will enter into force only after both countries complete ratification. The accessible official summaries do not state the rate ceilings or full conditions. Those details should not be assumed until the signed texts and protocols are available and counterpart ratification and commencement are confirmed.[2][4]
Map exposures but keep current law in place
Groups with income between El Salvador and either partner should map expected dividends, interest, royalties, service fees, business profits and asset gains. The UAE convention also covers capital and wider personal-income categories. No current withholding, foreign-tax-credit or return position should change solely because of the Assembly vote. Revisit procedures after Official Gazette publication, completion of both states' entry-into-force formalities and confirmation of each agreement's operative provisions.[1][2][4]
Official sources
- [1] Ratifican acuerdos con Türkiye y Emiratos Árabes para eliminar doble cobro de impuestos para empresas
Legislative Assembly of El Salvador · Document date: 2026-11-04
Official release: plenary approvals and vote counts; signing date; covered income categories; foreign-tax-credit and anti-avoidance purposes; further legal formalities before entry into force.
- [2] Decretos Emitidos en 2026
Legislative Assembly of El Salvador · Document date: 2026-11-04
Entries for Decrees 705 and 706 and register notice that material Official Gazette publication and entry into force remain pending.
- [3] Dictámenes
Legislative Assembly of El Salvador · Document date: 2026-10-29
Favourable opinions 82 and 83, files 789-10-2026-1 and 790-10-2026-1, for the Türkiye and UAE tax agreements.
- [4] Türkiye–El Salvador double-taxation agreement signed in New York
Türkiye Revenue Administration · Document date: 2026-09-30
Official signing notice: agreement signed 25 September; covered source-tax categories; information exchange; entry into force only after both countries ratify.