The Utilization of the Electronic Signature in Administrative Procedures Before the Tax Authority in El Salvador

César López and Rolando González from El Salvador, experts in taxes and fiscal planning, share with us this article on how the use of electronic signatures expedites administrative procedures before the Tax Authority, reduces costs and eliminates geographical barriers. This digital tool, which has the same legal value as a handwritten signature, benefits both the tax administration and local and foreign taxpayers, promoting the modernization and efficiency of tax processes.

Given the variety of administrative procedures that taxpayers perform daily before the tax authority, the implementation and use of electronic signatures, as an alternative to handwritten signatures, emerges as an ideal tool for both domestic economic agents and those abroad who intend to operate in the country. It guarantees several benefits such as process acceleration, elimination of geographical barriers, cost reduction, and document security presented to public administration.

Consequently, the regulatory framework for electronic signatures issued in El Salvador in October 2015 has enabled the tax authority to establish processes, controls, and internal mechanisms that facilitate users' completion of administrative procedures by accepting electronic documents and certificates, which are validated beforehand by authorized service providers. The main objective of this regulation was to equate simple and certified electronic signatures with handwritten signatures, thereby providing them with legal value and ensuring legal security for users.

Implementing electronic signatures and documents in various procedures available to users posed a significant challenge for the Salvadoran tax authority, known for its rigorous and structured nature. However, it positioned the authority as an institution committed to the central government's digital transformation, with precedents already existing for using certified electronic signatures for applications and documents submitted to this entity.

For example, in basic and widely used procedures such as registration in the Taxpayer Registry and the issuance of the tax identification card (NIT), the tax authority has enabled users to sign and submit both the corresponding form and supporting documentation in digital format. These documents must be certified by any of the certification service providers accredited by the Electronic Signature Unit of the Ministry of Economy.

Thus, we can conclude, that the use of certified electronic signatures in various administrative procedures before the tax authority offers advantages for both users and the authority itself, providing greater efficiency for all parties, including:

i) Cost Reduction: Given the signature is certified by an entity accredited by the Ministry of Economy, costs associated with notarial authentication of the taxpayer's signature and supporting documents are eliminated. This method not only ensures the integrity of the signed document and legitimizes the signer's identity with the same legal value as a handwritten signature but also offers multiple uses over time.

ii) Overcoming Geographical Barriers: Certified electronic signatures facilitate document signing from anywhere in the world, saving time and reducing costs related to travel and document legalization and apostille abroad.

iii) Promptness: The need for handwritten signatures is eliminated, and physical document handling is reduced, significantly speeding up administrative processes.

Therefore, the implementation of certified electronic signatures in administrative procedures before the tax authority represents a significant advance in modernizing and streamlining fiscal processes. By reducing costs and time linked with document authentication and validation, this initiative benefits taxpayers and enhances the tax authority's capacity to operate and deliver services more efficiently in an increasingly digital global environment. This enables their use for both local users and those abroad who wish to start operations in the country and need to complete their registration and other administrative procedures with the authority.

The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.