What is the difference between annexes and projection of personal expenses for income tax?

The schedules of personal expenses and the projection are different procedures that the taxpayer must know.

Each January, the projection of personal expenses for the current fiscal year is presented. In this case, taxpayers delivered last month to their employers the form for the projection of personal expenses for housing, health, food, education, clothing and tourism, whose limit is $5,037.55, as established in the Law for the Economic Development and Fiscal Sustainability after the COVID-19 Pandemic.

This year new rules apply and these began with the projection where the basic fraction is $11,310. It means that those who earn annually from that amount are within the income tax table.

As the workers already carried out this procedure, a week ago they saw in their payroll the discount of the tribute in the first month. Some received double what was recorded in January 2021 and others made their calculations and would come out with a 100% deduction.

How much will those who earn more than $2,000 per month pay in income tax in Ecuador?

These taxpayers must present in 2023 the annex of personal expenses, which is the detail of all the invoices to deduct the tax.

Luis Mantilla, tax consultantexplains that in this procedure fall the expenses that the worker made in food, clothing, housing, health, education and tourism. And that is done in February 2023 for the current fiscal year.

However, in February 2022, the annex for the 2021 fiscal year must be submitted. And here it is done with the previous procedure since the regulations apply for this year.

Workers register double and up to ten times more income tax withholding in January than a year ago

Mantilla indicates that the processes are clear and should not be confused. “Here the items or amounts established for the end of 2021 are maintained,” she says.

So, the workers in the continent, who already projected their expenses from $5,606 to $14,575.60 more than a year ago, will now present the annex. And in the case of natural persons residing in Galapagos, the maximum value to be deducted is $26,280.93.

“To fill out the annex of personal expenses, you must enter with your ID or RUC and your password to the page of the Internal Revenue Service (SRI). Most are electronic invoices, but there is the option of completing with physical invoices”, explains Mantilla.

What if I forgot to submit the Personal Expense Projection?

According to the SRI, there are a series of requirements for the procedure as originals of the citizenship card or passport, and of the voting ballot of the holder; delivery of the signed agreement of responsibility and use of electronic means, a document that will be delivered to one of the SRI offices.

This process is according to a schedule based on the ninth digit of the taxpayer’s ID or RUC.

For example, those who have an ID or RUC ending in 1 is February 10; those who culminate in 2 and 3 is February 14. Below is the detail:

If the taxpayer requires assistance for these issues or others, there is a number available: 1700 774 774 of the SRI call center. (I)