Residents of El Salvador, whether citizens or not, are subject to progressive taxation on both domestic and foreign income ranging from 10% to 30%. Amounts received from insurance policies, interest on savings accounts, gifts, and inheritances are tax exempt. Taxes on corporate income are levied at 25% for amounts over the first $75,000, which are exempt. Dividends are not taxable. The main indirect tax is the value-added tax (VAT) introduced in September 1992 at a standard rate of 10%. In 2003, the standard rate was 13%. Excise taxes are assessed on alcoholic beverages and tobacco products. A 3% real estate transfer tax is imposed when the real estate involved has a market value above $250,000. There are no local taxes.