Goodbye F-910: El Salvador Simplifies Its Annual Tax Filing
What's happening with Form F-910
If you own or manage a business registered as a persona juridica (legal entity) in El Salvador, you're probably familiar with Form F-910. For years, it was a required part of closing out the fiscal year -- the form used to file the annual Impuesto sobre la Renta (income tax) declaration for corporations. This year, El Salvador's Ministerio de Hacienda (Ministry of Finance) announced its elimination.
The reasoning is straightforward: reduce the administrative burden on taxpayers. Instead of maintaining a separate form, the data previously reported on the F-910 will now be consolidated into other existing forms. One less step in a process that already has plenty of steps.
This isn't an isolated change. It's part of a broader trend toward modernizing El Salvador's tax system, which includes digitizing processes and cutting redundant paperwork. In short, the tax authority is trying to simplify what can be simplified.
Context for those abroad
If you're a Salvadoran living in the US who owns a business or has investments in El Salvador, this change affects your annual tax filings back home. Your accountant in El Salvador will handle the transition, but it's worth confirming that your year-end reporting process has been updated. This is especially relevant if you're a partner or shareholder in a Salvadoran company.
How this affects your business
The good news is simple: one fewer form to prepare and submit at the end of each fiscal year. That means less time spent, lower professional fees, and fewer chances of making a filing mistake.
But there's an important detail you can't overlook. The information that used to go on the F-910 didn't disappear -- it now needs to be reported on other forms. If you don't identify exactly where each piece of data goes, you risk leaving something out. And omissions can create problems with the DGII (Direccion General de Impuestos Internos, El Salvador's internal revenue authority).
This is also a good opportunity to review your entire year-end closing process. Sometimes we carry forward procedures out of habit, and a change like this is the right moment to ask: "Is there anything else I could be doing more efficiently?"
What you should do now
Here are the specific steps I recommend taking before the fiscal year-end:
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Talk to your accountant. Confirm which forms now absorb the information you previously reported on the F-910. Don't assume it's been taken care of.
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Update your year-end checklist. If you have an internal closing checklist (and if you don't, this is a good time to create one), make sure it reflects the new requirements and applicable forms.
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Check your accounting software. Confirm that your system is up to date and can generate reports in the current formats. Outdated software might produce forms that are no longer valid.
Key dates to keep in mind
The elimination of the F-910 was announced in December 2023. This means the fiscal year 2023 closing -- filed in April 2024 -- will be the first one without this form.
If you're not clear on the filing deadlines for the replacement forms, check directly with the DGII or your accounting professional. It's better to sort that out now than to discover it at the last minute.
Simplification is good, but it requires action
The elimination of the F-910 is positive news. Less red tape is always welcome, especially for MIPYMES (micro, small, and medium businesses) that already have their hands full running day-to-day operations. But simplification doesn't mean you can stop paying attention.
Take a few minutes this week to confirm with your accountant that everything is in order. A well-managed transition today saves you headaches in April.
If you need guidance on adjusting your year-end processes, Contabilidad Hidalgo is here to help.
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