Current personal income tax deductions will not change with the draft Organic Law on Economic Efficiency and Employment, which President Daniel Noboa sent to the National Assembly, according to tax lawyer Napoleón Santamaría.
The expert points out that “absolutely nothing is moving (in) the regime” regarding personal income tax. “Whether it’s increasing or decreasing deductions, moving tax credits or recording higher income tax, nothing, absolutely nothing, is moving (in) the regime,” he says.
What changes does the new tax reform proposed by Daniel Noboa bring?
The tax reform proposed by former President Guillermo Lasso took effect on July 1, and as part of the changes, dependent workers are stated to have an 18% reduction in expenses, however, the cap and reduction varies according to family obligations.
Although there will be no changes to these items, for Santamaria in general the tax reform, which the executive branch sent to the legislative function, is “bad” and what worries him the most is the issue of forgiveness.
“There is a camouflaged tax amnesty there. It seems that it is very bad that such a reform is ordered… The creation, modification or distribution of taxes and the forgiveness of how to distribute the tax should be typed in the law, not in the regulations, so it is unpresentable”, says the expert.
Daniel Noboa sent his tax reform project to the Assembly
On Monday evening, November 27, the executive sent a 96-page bill proposing changes to several legal entities, including a new free zone regime and VAT refunds on purchases of goods and services. .
Source: Eluniverso
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