To benefit from a larger payment reduction Income tax From the same year 2023, dependent workers must submit a new form for the projection of personal expenses in the month of July. But until what day?

The decision issued by the Tax Administration (SRI) with the rules applicable to the reduction of income tax for personal expenses establishes that for this opportunity a new form must be submitted in July in order to immediately access the benefits. From 2024, the projection of personal expenses must be submitted in February, and if there are changes in wages, personal expenses or family obligations, it can be updated in June or September.

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

But since the new reduction scheme – based on the number of family responsibilities – did not come into effect until July 1, 2023. Through the Decree on the Organic Law to Strengthen the Family Economy, the resolution considers a transitional provision so that workers can update their personal expenses, report their family responsibilities and submit a request for a larger reduction in the form for the projection of personal expenses, which has been updated with a box for entering the number of obligations, since the upper limit of personal expenses that can be predicted depends on this number and the amount. deduction for tax payment.

The following are considered family obligations of the taxpayer:

This is a model letter prepared by the DZI for taxpayers who want to show their parents as dependents

The form and documentation on family obligations must be submitted to the company where the taxpayer works and it is the employer who specifies the deadline for delivery within this month of July. This is because it depends on each company’s internal payroll processes, according to an inquiry to SRI.

For example, in a public institution, salaries are paid every 15th of the month. In private companies, it can be 15 or 20.

Thus, in some companies, their employees were informed that the presentation of the new form must take place by this Friday, July 14.

Employers must re-liquidate the income tax taking into account the projection of personal expenses presented by the worker and the tax table given in the Law on the Organic Regulation for the Strengthening of the Family Economy for the fiscal year 2023. Likewise, they must carry out withholdings in accordance with the values ​​for salary payments for the month of July . This is indicated by Resolution no. NAC-DGERCGC23-00000020 of SRI issued on June 30.

“If, after the worker has submitted a new projection of personal expenses and performed a recalculation, the employer discovers that excessive amounts were withheld during the first six months of the year, he should not make any additional withholdings for the rest of the year. In that case, the taxpayer can submit an appropriate request for income tax refund in accordance with the law,” the Decision states.

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

In January, the projection of personal expenses for the year 2023 was already presented with the regulations then in force: an expenditure limit of around 5,300 dollars, which is the equivalent of seven basic family baskets, and a reduction of 500 or 1,000 dollars depending on the level of income… Now, with the new law , that same person will pay less even if they don’t have any family obligations, and maybe they don’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 for direct access click here.

Employers are withholding agents for the income tax of their dependent workers and deduct this tax from their workers on a monthly basis. With these changes and recalculation, there will be taxpayers who will pay less or will not have to pay anything.

Times determined in the SRI resolution