If you want a reduction in income tax, you must submit a form for the projection of personal expenses in January

The Internal Revenue Service (SRI) recalled that this month the projection of personal expenses must be carried out and that the maximum term is January 31, although companies usually receive them up to a few days before. This allows taxpayers to pay less tax.

This projection of personal expenses must be carried out by all people who have a job in a dependency relationship and who make use of the reduction for these expenses of their income tax. Based on this, your employers will give you discounts on your payroll.

The SRI published on its social networks the link to obtain the form: https://www.sri.gob.ec/nl/formularios-e-instructivos and there a list of taxes is displayed and the item of personal expenses must be located . This form that is posted on the institutional portal is from the fiscal year of 2022, which is the same as that of this 2023, since the same regulations that came into force a year ago after the tax reform that modified the way of calculating this tax apply.

In this declaration of personal expenses to be used by the employer in the case of income in a dependency relationship, the following must be stated:

• The fiscal year: 2023
• City and date of delivery reception
• Worker ID number
• Surnames and names
• projected income
• Projected expenses: housing, education, art and culture; of health; of clothing; feeding; of tourism.
• Income tax reduction for projected personal expenses
• RUC of the withholding agent (employer) and its company name
• Employer and worker signatures.

Several aspects are considered to calculate this rebate. The basic fraction that for this 2023 is $11,722 is taken into account to determine if the taxpayer can apply the 10% or 20% discount. If the gross income of the taxpayer (all remunerations, including tenths, reserve funds) does not exceed the equivalent of 2.13 basic fractions —in this case, $24,967.86—, 20% of personal expenses may be deducted from the tax ; and, if it exceeds that value, you can only apply 10% of said expenses.

The value equivalent to seven basic baskets determined by the National Institute of Statistics and Censuses (INEC) -this is $5,344.08- is the ceiling to project the reductions. Thus, $534.40 could be subtracted for 10% and up to $1,068.81 for 20%. (YO)