Dependent workers who pay Income tax These days, they have time to resubmit their personal expense projection to their company and thus get a bigger reduction in the payout that is discounted in their monthly role. This is due to the fact that on July 1, 2023, the Regulation of the Law on Strengthening the Family Economy entered into force, which establishes a new reduction mechanism based on the number of family obligations that the taxpayer has and reports.

You must present the new projection of personal expenses to the employer this July. Companies are accepting it, some have set a limit until next Friday, July 14.

Income tax: now the reduction will depend on how many family obligations the taxpayer has, not on salary

In January, the projection of personal expenses for 2023 was already presented with the then-current regulations: an expense limit of about USD 5,300, which is the equivalent of seven basic family baskets, and a reduction of USD 500 or USD 1,000, depending on the level of income. . Now, with the new law, that same person will pay less even if they don’t have family benefits, and they won’t pay anything if they do.

The form can be downloaded from the following general link: https://www.sri.gob.ec/formularios-e-instructivos or click directly here.

The Institute has updated the form of projection of personal expenses for the application of new income tax benefits provided for by the Act on Strengthening the Family Economy.

This is the data that the form asks for:

1. Date in which you submit the form.

2. Number ID card of the taxpayer.

3. Full names and surnames.

4. Estimated income: corresponds to a single monthly fee multiplied by the time spent in the company or institution in the period of 2023. The value of the contribution to IESS should not be underestimated.

5. Estimated costs: the maximum value you can present in personal expenses depends on family obligations.

The limit for a person who has no burden is seven basic family baskets, taking into account the value of this indicator measured by the National Institute of Statistics and Census (INEC) in January, that is $764.71, multiplied by seven: $5352.97.

If you have a family load, you can deduct the cost of up to nine baskets, or $6,882.39.

With two fills, the limit is eleven baskets, equivalent to $8,411.81.

With three refills, your spending limit is $10,705.94, which is the value of fourteen basic family baskets.

Four family responsibilities allow personal expenses to be projected up to $13,000.07 (17 baskets).

If she loads five or more, the limit is twenty baskets, equivalent to $15,294.20. The same upper limit applies to a worker in charge of people with catastrophic, rare diseases and/or diseases without parents.

The form must break down the amount of expenses into six items or less, depending on the taxpayer. For example, they can be accommodated in education and food only if it covers their upper limit.

6. A worker or his family obligations with a catastrophic illness: Mark Yes or No in this field.

DZI defined how to report family obligations and achieve a greater reduction in income tax, parents must give their consent for inclusion

7. Number of family obligations to reduce personal expenses: Parents, spouse or common-law partner and children up to 21 years of age or with disabilities of any age are considered family obligations, provided that they do not generate taxable income and are dependents of the taxpayer. In no case can two or more taxpayers take into account the same family burden for the reduction of personal expenses.

8. Income tax reduction for planned personal expenses: the amount of the rebate depends on the anticipated personal costs and expenses.

After completing these eight points of the form, the taxpayer must sign it and deliver it to the employer so that the latter can complete it with company information and recalculate the monthly deduction which will be lower, and in some cases there will no longer be a monthly discount on the role.