By the end of 2023, practically 1000 million dollars will be collected as a result of the controls of the Tax Administration (SRI), this and 900 million dollars from last year are two historical values ​​also called forced collections: when the taxpayer does not pay himself but after the control of the authorities.

“And the truth is that it helped us to increase our income this year even though we reduced taxes”, comments the director of SRI, Francisco Briones. By September, 13,502 million dollars were collected and a growth of 2.5%.

This tax reduction includes the Foreign Exchange Outflow Tax (ISD), which has been progressively reduced during this Government from 5% to 3.50%, and will remain at 2% on December 31, 2023 as established by Executive Order 643 signed by Guillermo Lasso the last time in January, unless the new government repeals the said decree.

The tax on the outflow of foreign currency is already 3.50%, with the change of Government, will it continue to fall to 2% as determined by Guillermo Lasso?

Regardless of the presidential decision, there is a ruling by the Constitutional Court that declared unconstitutional the 2011 Environmental Promotion Law – promoted in the Rafael Correa administration – that raised the ISD from the 2% rate it was created in 2007 to 5%, but was given up to December 2023 to remain in force until the new tax reform is sent. Furthermore, President-elect Daniel Noboa Azín said in the last debate on October 1 that he would abolish this tax.

If Noboa wants to implement new tax reform and, for example, change the recently reformed income tax deduction scheme, it has to do so by law and it would have no effect for 2024, as annual taxes change according to the fiscal year that comes into force January 1 each year.

“Each government has the authority to decide what to do in tax matters and that through legal means. If something should be done, it should be by fiscal year 2025,” says Briones.

SRI already has 1047 ‘influencers’ registered as collaborators in the economic activity of content creators on social networks

There are also decisions that must be made at the end of the year in order to take effect in the next fiscal year and this is part of the interim report prepared by SRI with three elements: what they found and how they solved it, plans that are in progress and what should be done continue to execute and also contains a series of warnings for decisions that must be made immediately in December, January, February. “Whenever a new government comes, they have to know what they have to sign or they have to decide soon because it’s according to the law, according to their calendar, according to whatever. There are provisions that have to be issued in December, for example the income tax base update, the ICE inflation update.”

Until then, SRI continues to advance in the digitization of services and in the coming weeks plans to take care of VAT refunds for companies in a shorter time. That’s “super important because it’s monthly liquidity for companies, which will also be ready, a process that currently takes 120 days will take 30 or 35 days at most,” Briones offers.