The main objective of law 5542 is to foster job creation and promote development of the country’s poorest regions, by a 5% cut in income taxes and a reduction of up to 50% in taxes on earnings sent abroad.

The law’s main focus is tax stability, and it does not touch upon areas that could affect investor yield, for example royalties, so as to avoid negative repercussions on repeat investments under bilateral investment protection agreements.


Néstor Loizaga