SRI enables a new version of the withholding annex in a dependency relationship

The Internal Revenue Service (SRI) enabled the new version of the annex for employers to submit information on the withholdings made to their workers on their income received in a dependency relationship during the 2022 fiscal year.

The entity reported that this so-called REDEP Dependency Retention Annex is now available on its website www.sri.gob.ec. Access by clicking here.

On Tuesday and Wednesday there have been intermittencies, but the SRI indicates that they have been overcome. In order to download, you must have the DIMM, which is an information declaration system on magnetic media that allows you to create XML files, which contain the information of a taxpayer’s annexes. The download can be done from any browser, except Google Chrome.

Reduction in income tax: who must submit a projection form for personal expenses and how to do it

In accordance with the Organic Law for Economic Development and Fiscal Sustainability after the COVID-19 Pandemic, this annex details the reduction in income tax caused by personal expenses before allocating tax credits that may apply.

“For this, it is necessary to identify that the value of the basic family basket corresponds to that in force as of December of the 2021 fiscal year, as well as personal expenses for housing, health, food, clothing, tourism and education, including in this last item the concepts of art and culture, as established by Circular NAC-DGERCGC21-00000007″, reported the SRI in a statement.

All workers who used income tax reduction in 2022 must submit a personal expenses annex in February

The annex for withholdings at source under a REDEP dependency relationship must be submitted by employers from January 10, according to the ninth digit of the RUC number.

Within the SRI regulations, it is stated that employers will withhold at source for the income tax of their workers on a monthly basis and for this they must add all the taxable and projected income for the entire fiscal year that correspond to the worker, according to as defined in the Internal Tax Regime Law, and deduct the amounts to be paid for the individual contribution to Social Security.

On the tax base thus obtained, the rate contained in the income tax table for natural persons and undivided successions will be applied, thereby obtaining the projection of the income tax caused in the fiscal year. The reduction for the projection of personal expenses will be subtracted from the result obtained, according to the limits established by law, and will be divided by 12, to determine the monthly rate to be withheld for income tax.

To calculate the value to be withheld by the employer in regards to the limit of seven basic family baskets, the value of the Basic Family Basket as of December of the previous fiscal year corresponding to the income subject to withholding in the fountain. (YO)