The monthly self-deduction of income tax that large taxpayers have to pay will be in different percentages and depending on the sector. The percentage reduction for youth employment has also changed, but now it is not based on a certain number of newly created jobs, but this incentive is included for those who employ alimony payers.

These are some of the changes in the tax reform of the government of Daniel Noboa during the discussion in the Committee for Economic Development of the National Assembly, which on December 10 unanimously accepted the first report of the draft Law on Economic Efficiency and Job Creation, which is in the plenary session, it will be known:

Self-retention will have another parameter and that by sector

The self-deduction of up to 3% per month on the total taxable income of large taxpayers, which was included in the original project with the purpose of inflow to the state, was retained, but the percentage was changed. It will be the one established by the Tax Administration (SRI) on the basis of the effective tax rate determined in the control processes according to your usual economic activity. It must not exceed 90% of the stated rate and will be considered a tax credit when settling income tax.

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Incentive for youth employment

The additional income tax deduction proposed for those employing 18-29-year-olds is now 50% on wage costs and includes the employment of child support payers.

The deduction will be 75% if the new jobs are intended for young people of that age who graduated or graduated from public universities and higher technical, technological, pedagogical, artistic and higher conservatories or public, municipal or public educational institutions.

It will also be 75% for the taxpayer who achieves a net increase in jobs for the construction and agriculture sectors.

The compensation will apply to new jobs only in the year in which the net increase was achieved, as well as for the following year.

Previously, the initial proposal suggested encouraging the employment of young people with additional benefits ranging from 20 to 90 percent, depending on the number of new jobs. The ladder started with 12 jobs and went up to 500 new employees.

Deductions for employment of those who have been in prison

For a taxpayer who generates a net increase in employment for persons who have served a prison sentence of more than one year or for their spouses or de facto common-law partners, the new version of the bill increases an additional deduction of 75% for wages and benefits expenses paid to them social security contributions. The original project increases by 50%.

The additional deduction will amount to 50 percent if the new jobs are intended for persons who have been unlawfully deprived of their liberty. It will not accumulate with additional deductions related to youth employment.

Free trade zone

The President of the Development Committee of the Assembly, Valentina Centeno, indicated that the percentage of goods and services that are produced in free zones and that can be sold on the national territory has changed. It was proposed to be 30%, but it was reduced to 20%. This means that only 20% of goods and services produced in free zones can be sold on the national territory.

In the chapter on free zones, single-business zones have also been abolished, which can only be multi-business, namely those areas within the national territory where multiple users engaged in different activities can be established, and who benefit from special taxes, customs and foreigners. trade regime.

He also mentioned other points from the first report of the bill: