Compliance with the formal and substantive tax obligations of taxpayers, according to their classification established by the Ministry of Finance

Abstract

The objective of this research is to diagnose the compliance of formal and substantive tax obligations by business owners in Sonsonate. This was carried out through surveys directed at the business owners themselves as well as their collaborators in the fiscal area, taking into account that the research design is descriptive and qualitative in nature. Some of the most notable findings are: among the respondents, 164 entrepreneurs reported monthly income exceeding $50,000, totaling $600,000 for the year 2019, which obligated them to appoint an auditor for tax certification purposes. Of these, only 64 appointed one on time. The others may have done so late, thus incurring penalties for noncompliance. The conclusion is that many business owners are unaware of their tax obligations, both formal and substantive, in relation to their income levels.