The special contributions on the patrimony will be valid for two years; while changes in income tax will affect those who earn $ 2,000 or more.
The tax reform of the Government of Guillermo Lasso will go through the Ministry of Law because the Assembly did not have the votes to archive it. In this context, the original proposal without any changes may be issued, by decree, as soon as this Sunday, November 27, 2021.
Thus, the new taxes will begin to be collected from 2022 and one of the main conditions within the agreement with the International Monetary Fund (IMF) will have been met.
The main taxes within the tax reform are:
Temporary tax on personal assets
The special contribution will begin to be charged to people who have an estate of $ 1 million ($ 2 million in the case of a conjugal partnership).
The payment will be only once in 2022. In addition, the properties that are kept in primary forests and areas of ecological diversity; the value of the first home and unproductive farmland, up to a maximum value of $ 200,000.
Thus, a person with an equity of $ 1.1 million will pay $ 11,000 until March 31, 2021; while someone with $ 5 million will fork out $ 75,000.
Temporary contribution on the assets of the companies
The temporary contribution will be charged at companies with $ 5 million or more of equity. The payment will be for two years (2022 and 2023).
In the Opportunities Law, which was not qualified by the Assembly, it was established that, in addition to having the minimum level of equity, the companies that pay the tax had to comply with other characteristics such as have generated profit in 2020 and that its sales during the pandemic are higher than in 2019.
Those conditions are no longer taken into account in the project that will enter into force after the Assembly could not archive it.
In this way, a company with $ 5 million of equity would have to make two payments of $ 35,000; while one with $ 10 million will disburse two payments of $ 70,000. It can be applied to a plan to cover the obligation in six months.
Personal expenses
The personal expenses They will no longer be deductible, but will constitute a tax credit.
If you have annual income of up to $ 24,090, that is, $ 2,007 per month, you can cross the income tax payment with up to 20% of the personal expenses in rent or payment of interests for house purchase; food, alimony; clothing; National tourism; Health; education; art and culture.
If income exceeds $ 24,090, the tax credit will reach up to 10% of personal expenses, which, in all cases, may not add up to more than the equivalent of seven times the value of the basic basket per year ($ 4,900). Shall exclude VAT and ICE of transactions.
Currently, the sum of these expenses can reach up to $ 14,575.60, provided that said value does not exceed the 50% of annual income.
According to the authorities, only 3.5% of Ecuadorians earn $ 2,000 and will be affected by the changes.
When asked about how much more will you pay, some examples are detailed below:
In the case of someone who earns $ 2,000, the result is $ 15.76 of extra contribution. Thus, in total it will deliver $ 28.76 per month, which is equivalent to 1.43% of that annual income.
If the amount of income rises to $ 2,500, the additional contribution is $ 52.11; and the total monthly payment is $ 84.86. While a salary of $ 4,500 would represent an outlay of $ 169.52 or more, or a total outlay of $ 441.32 each month (9.81% of your annual income)
At the top of the income scale, a person earning $ 10,000, for example, will contribute $ 662.15 more, or a total payment of $ 2,083.15 per month (20.86% of their annual income)
It must be taken into account that in all cases it is referring to taxable income; that is, the one that actually reaches the taxpayer after subtracting contributions to the IESS, tenths and other benefits
0% VAT rate to ICE
From 2022, it will be established rate 0% VAT for feminine hygiene products and diapers. That measure will reduce tax collection by $ 39 million. Another $ 13 million will no longer be charged for 0% VAT to foreign tourists.
In the case of Special Consumption Tax (ICE), the Treasury will stop receiving $ 35 million for the 0% rate for telecommunications plans, water heaters and water heaters.
Likewise, due to other adjustments in the ICE and the increase from 5 to 10 years in the amortization of tourism losses, the tax sacrifice will be $ 8 million in 2022.
$ 60 fixed annual income tax for popular businesses
What promised in campaign, Lasso included the elimination of the current microenterprise regime, where 2% income tax is charged on sales.
The alternative is a scheme where popular businesses, that is, those with income of up to $ 20,000 a year, will pay a fixed fee of $ 60 in each fiscal year.
The rest (more than $ 20,000 up to $ 300,000) will have to be taxed according to a growing table. For example, an entrepreneur with an income of $ 80,000 would pay an Income Tax of approximately $ 750 a year. (JS)
El Gobierno proyecta recaudar $1.900 millones adicionales entre 2022 y 2023. A partir de 2024, se tendrá ingresos adicionales permanentes de un poco más de $700 millones.
