SRI enabled the form for the projection of personal expenses for 2022, with a new scheme

The Internal Revenue Service (SRI) enabled on its website the single form for the projection of personal expenses, applicable for the year 2022, and which includes the reductions in income tax caused by personal expenses supported by sales receipts, of the 10% and 20% of said expenses.

The entity reported that these reforms were created through the Organic Law for Economic Development and Fiscal Sustainability, after the COVID-19 pandemic and that for natural persons it is applicable before imputing tax credits to those that may be applicable in accordance with the Law .

These are the changes in the projection of personal expenses for 2022

To access the form, taxpayers must enter www.sri.gob.ec, and go to the Tax Information section, then to How do I declare my taxes ?, then to Form and guides where you should search and enter Personal Expenses. Or you can download it directly here

The SRI also indicated that the basic fraction deducted from income tax for the 2022 fiscal period is $ 11,310.00, and the expenses incurred in the country supported by sales receipts will be deductible for:

1. Lease or payment of interest for credits for the acquisition of a single home.
2. Feeding.
3. Alimony pensions.
4. Clothing.
5. National tourism in registered establishments and with the LUAE the Unique Metropolitan License for the Exercise of Economic Activities).
6. Health.
7. Education (includes expenses incurred in art and culture).

Regarding the new scheme for calculating personal expenses, the SRI explained that to calculate the gross annual income, all remunerations, commissions or bonuses, including tenths and reserve funds, will be added.

While to calculate the maximum amount of income tax reduction caused by personal expenses, he presented three scenarios:

1. If the taxpayer’s gross annual income (including exempt income) does not exceed 2.13 deducted basic fractions (year 2022: $ 24,090.30), a reduction of the 20% of the lower value between personal expenses or the value of 7 basic family baskets (up to $ 1,007.51).

2. If the taxpayer’s gross annual income (including exempt income) exceeds 2.13 deducted basic fractions (year 2022: $ 24,090.30), a reduction of the 10% of the lower value between personal expenses or the value of 7 basic family baskets (up to $ 503.76).

The third scenario corresponds to the applicable regime for the province of Galapagos.

In this case, for the reduction of the differentiated calculation, applicable to the income tax caused, the values ​​of seven times the basic family basket; and 2.13 basic fractions deducted from income tax indicated in the Law, must be multiplied by the Space Consumer Price Index of Galapagos IPCEG.

The entity clarified that in order to calculate these discounts, the amount of the basic family basket in force for December 2021 is considered, in accordance with the provisions of the regulations. The current seven basic family baskets are equivalent to $ 5,037.55.

The expenses incurred by parents, spouse, partner and children, dependents of the taxpayer or their spouse are also considered; provided they do not receive taxed income.

In eleven years the inheritance and legacy tax generated $ 215.6 million to the State

Finally, the entity reiterated that when the worker considers that his projection of personal expenses is different from the one originally presented, he may deliver a new one to his employer in the months of July or August of fiscal year 2022.

It may also do so in any month of the year, in the event of an increase in salary or salary, or when previously projected personal expenses are higher than those actually estimated to be incurred, in accordance with the provisions of Resolution No. SRI- NAC-DGER2008-0621 published in Official Gazette No. 344 of May 23, 2008 and its reforms. (I)