Tax reform gives good results to Ecuador for temporary contributions: $ 392 million collected in one month

Some The Internal Revenue Service (SRI) has managed to collect $392 million for the temporary contribution for a post-pandemic economic boost, which was approved in the last tax reform within the Economic Development Law, as revealed by the Revenue institution itself.

The collection statistics on their website show that they were $301 million by companies or partnerships and $91.8 million by natural persons.

The results of this collection can already be seen in the transfers made to the budget proforma. Thus, this April 7, in the budget execution of the Ministry of Finance, it is stated that $ 348.5 million had been delivered to the fiscal coffers.

The figure represents 47.8% of what was expected to be collected throughout the year for this concept. is that the The Ministry of Economy and Finance had anticipated that the Economic Development Law would raise $467 million from companies with assets of more than $5 million and $260 million from contributions from natural persons who have individual assets of one million or more or marital partnerships of $2 million.

The temporary contribution to equity must be paid, according to the new regulations, by 1,931 companies and 6,000 individuals, during 2022. For 2023 the temporary contribution will be made only by the companies.

In accordance with Pablo Guevara, tax consultant at Andersen & Tax, the collection figure is very positive and assures that he has no doubt that the Government will reach the goal set. He also commented that the SRI has extensive information on taxpayers and therefore was very clear about how much it could aspire to collect in the year. He explained that although at one point there was a delay in the delivery of forms for people who wanted to make their declarations and pay the contribution, in the end the issue was resolved in a good way.

He recalled that on March 31 the deadline for the declaration of companies and natural persons expired, and that as of that date, the declarations are already out of time. In any case, he commented that the law had also established that these taxpayers could make a payment with facilities. They could request a payment method without an initial payment and with payments of up to six months.

Regarding the impact that this contribution can have on citizens and companies, Guevara commented that the payment of any tribute represents a decapitalization. However, he explained that from what he has seen, the taxpayers consider that it is a necessary payment to the State and although nobody likes to pay taxes, on this occasion it has been complied with regularly.

For its part, Napoleón Santamaría, tax attorney, agreed that the amount collected is a very important figure that has contributed to the excellent result March tax. “Never in history had $1.9 billion been raised in a single month,” she said. He also clarified that from what he knows, the $392 million is money actually collected. It is that due to the term that was given, there are many people and companies that will gradually pay the rest of the resources. According to a calculation by the SRI, it is anticipated that between $550 million and $600 million could be received. According to Santamaría, the good collection results, added to the good price of crude oil, mean that the country has a good income of money, which should already be translated into improvements for the benefit of the citizens.

In this way He said that he congratulates the citizens who have complied with their taxes and contributions and assured that now it is up to the Government respond with social public policies urgently. Thus, for example, basic needs in education and health must be covered, including those of the Ecuadorian Institute of Social Security (IESS). (I)