How are different expense categories treated in El Salvador for reimbursement?

Expenses Invoicing Requirements

For an expense to be valid for reimbursement, it must be liquidated

by legal documents established in Article 107 of the Tax Code of El

Salvador, in this case if the vendor is a taxpayer, the document to

request is Factura de Consumidor Final or Factura de Sujeto Excluido.

Passports/Work Permits/Visa

Employees are responsible for ensuring they hold a valid, current

passport/work permit/visa. However, the Company may reimburse

the expenses for obtaining or renewing the passport upon supervisor

approval. Velocity Global may assist with obtaining passports, work

permits, and/or business visas upon request by the end client.

Transportation Expenses

No issues, can be claimed as non-taxable as long as receipt is supplied

Per diems

Velocity Global currently does not support per diem in El Salvador.

Air Travel/Bus and Train

No issues, can be claimed as non-taxable as long as receipt is supplied

Taxi, Cabify, Uber, and related apps

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Rental

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Parking Fees

No issues, can be claimed as non-taxable as long as receipt is supplied

Tolls

No issues, can be claimed as non-taxable as long as receipt is supplied

Other Business Travel-Related Expenditure

No issues, can be claimed as non-taxable as long as receipt is supplied

Travel Insurance

The employee can request reimbursement of travel

insurance expenses for the days that have been previously

authorized.

Mileage and Fuel

The rate should be defined by the Supervisor and the Employee.

Accommodation

No issues, can be claimed as non-taxable as long as receipt is supplied

Meals (travel/events/during work)

No issues, can be claimed as non-taxable as long as receipt is supplied

Client Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied

Staff Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied

Mobile Phone bills

If for some reason it is not possible for the company to assign a telephone line to the employee and they use their personal telephone for work purposes, these expenses will be reimbursed as long as they demonstrate that such calls were made for that purpose, attaching an invoice and detail of numbers and name of the client or contact.

Broadband (Internet)

If the work contract requires working from home, the company may recognize a percentage of the cost of this service that the employee acquires, presenting the service invoice, as well as an affidavit signed by the employee stating that the service It has been used for business purposes. The percentage will be negotiated at the time of signing the contract with the employee.

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

Internal fixed assets policy.

Furniture

Internal fixed assets policy.

Stationery

No issues, can be claimed as non-taxable as long as receipt is supplied

Gifts

No issues, can be claimed as non-taxable as long as receipt is supplied

Coworking and Office Rentals

No issues, can be claimed as non-taxable as long as receipt is supplied

Bank Charges

Bank or credit card charges incurred because of the employee's delays claiming expenses will not be reimbursed.

Foreign Currencies

Each employee is responsible for obtaining the necessary foreign currency on international travel, commission expenses for currencies purchased on foreign travel will be reimbursed with the respective supporting documentation.

Annual subscriptions

No issues, can be claimed as non-taxable as long as receipt is supplied

Training Expenses

Upon approval of the supervisor, a membership will be reimbursed per employee, per association, when it is specifically related to the functions of their job, with respective supporting documentation.

Medical Claims/Health Check Up and related items/Medical Insurance

N/A

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

No issues as long as event directly related to business. Please provide relevant receipts

Meals (travel/events/during work)

Meals on business trips are not taxable.

Di minimus expenses (Tips, no receipt)

N/A

Payroll Reporting

N/A

Additional Reporting

N/A

Review process

N/A