Exemption from paying income tax for 10 years for new investments in renewable energy sources, with an additional deduction of 20% to 90% for those that create new jobs for young people between 18 and 29 years old, These are some of the benefits included in the tax reform sent by the Daniel Noboa government to encourage job creation and entered the National Assembly as an urgent economic issue.
In accordance with this goal, the draft of the Organic Law on Economic Efficiency and Job Creation contains several reforms of the Law on the Internal Tax Regime.
Daniel Noboa sent his tax reform project to the Assembly
Exemptions from income tax tend to include:
In addition, “an additional percentage of deduction is added for the increase of new jobs for a fixed or indefinite period, i.e. a net increase of jobs established by regulations, intended for the employment of young citizens aged 18 to 29.”
| new places | Additional deduction |
|---|---|
| 12 | twenty percent |
| 25 | 30% |
| fifty | 40% |
| 100 | fifty percent |
| 200 | 60% |
| 300 | 70% |
| 400 | 80% |
| 500 | 90% |
Another text proposed in the reform states that “an additional deduction of 50% of compensation and other social benefits is generated by dependent employment of people who have been sentenced to prison terms in Ecuador whose duration would be longer than one year or their spouses or de facto community partners.
To benefit from this deduction, the employer must be up to date with its obligations to the Internal Revenue Service (SRI), the Ecuadorian Social Security Institute (IESS) and the Ministry of Labor.
Only employers who have employed dependents for a minimum period of one year with a break at the end of the fiscal year corresponding to citizens in conflict with the criminal law who are deprived of their liberty in the rehabilitation system can benefit from this deduction social security for more than one year 0 to their spouses or partners in a de facto community.
The deduction will be increased by an additional 50% if persons with final convictions are employed.
The additional deduction provided in this section shall not be cumulative with the additional deductions in section 9.2. of this article (deductions for the increase of new jobs), and will not be applied in the case of employment of citizens who were deprived of their freedom in the social rehabilitation system for longer than one year and who were supported by the same employer, relatives in the fourth degree of consanguinity and the second degree of kinship of the employer, shareholders or legal representatives or persons related to the employer in the three three years prior to his employment.
Source: Eluniverso
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