One of the novelties of the tax reform, which entered into force with the first legal decree – sent by the Government after the death cross – and confirmed by the Constitutional Court, is that from July 2023 dependent workers can apply for a greater reduction in income tax payment based on family obligations that they declare
The Tax Administration (SRI) states that family dependents can be parents, a spouse or common-law partner and children up to 21 years of age or with disabilities of any age who do not earn taxable income and support the taxpayer, i.e. the taxpayer.
How to complete the new projection of personal expenses so that you do not pay income tax or pay less
The number of benefits that the taxpayer has must be included in the form for the projection of personal expenses that companies receive these days to recalculate the amount that they pay to their workers each month. With a copy of the identity card of each cargo to confirm the relationship.
Parents who are included as a burden must also present a letter expressing their consent to be considered a burden for their child, stating their name, ID number, the tax payer number of their child that will be charged to them and declaring that you are dependent on them . SRI has published a model of this letter on its website, at the following link: https://www.sri.gob.ec/nl/formularios-e-instructivos.
/cloudfront-us-east-1.images.arcpublishing.com/eluniverso/4USFBB5SCRATZCOM4Y62SBKJTU.PNG)
It is a simple letter, it does not require certification by a public notary or the preparation of a lawyer, the tax administration explains.
Parents must not have taxable income to be registered as dependents. Old-age pensions are not included in taxable income, so if they receive a pension, they can be a family burden. What they should not do is issue a bill. “If he issues an invoice, it is no longer a charge,” explains SRI’s regional director, Carlos Vicente Marín.
And it also indicates that including one of their children as a family burden to reduce income tax does not harm the father or mother to claim a value added tax (VAT) refund, a privilege enjoyed by senior citizens. . Being recorded as a burden “does not prevent the father from claiming a VAT refund”.
If I do not have family obligations to reduce income tax, do I provide a new projection of personal expenses or not?
The limit of personal expenses for which a greater reduction can be foreseen depends on the number of family obligations:
Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
