El Salvador Relaxes Interpretation of Deductible Business Costs and Expenses

El Salvador published Decree No. 568 in the Official Gazette on 11 May 2026, providing an updated interpretation of Article 28 of the Income Tax Law, which concerns deductible business costs and expenses. Article 1 of the Decree provides that Article 28 shall be interpreted as follows:

"Necessary costs and expenses for the production of income and for the preservation of its source shall be understood as the purchase costs and all those costs that are necessary and inherent to the business…