Dependent workers who cover the expenses of a parent or one of them can be shown as family obligations at the time of presenting his new projection of personal expenses due to which he will have a greater reduction in income tax payments.

This projection must be presented this July, after the new tax reduction scheme approved by the Decree on the Organic Law to strengthen the family economy begins to be applied.

How to complete the new projection of personal expenses so that you do not pay income tax or pay less

Parents can be included as a burden if they do not generate taxable income, which does not imply an old-age pension because they are not taxed.

In order to include parents as a family burden, it is necessary to give written consent in which they will state their first and last name, ID card number, number of the child of the taxpayer who will be burdened with them, and declare that they support them.

This information must be included in the letter, and as a guide, the Tax Administration (SRI) has published a model of this consent on its website, at the following link: https://www.sri.gob.ec/nl/formularios -e -poučan .

It is a simple letter, it does not require certification by a public notary or the preparation of a lawyer, the tax administration explains.

Who declares a child a family burden when the parents are divorced? Questions and answers for filing the form and getting a reduction in income tax

The importance of declaring family obligations stems from the fact that each of them allows the taxpayer to agree to declare a higher limit of personal expenses and, consequently, a greater reduction in income tax payments.

The costs are reported to the employer together with the new form for the projection of personal costs, so that with this data the company can recalculate the monthly volume of this tax that is paid to the workers in relation to the dependency in their salary roles. With the implemented tax reform, some taxpayers will pay less monthly, and in other cases they will no longer have to.