At least five taxes are paid by natural persons in Ecuador

Every time Edith goes to the supermarket, in Guayaquil, she checks her bill and sees the 12% value added tax (VAT), which sometimes it’s $3 or $6, depending on what you buy. You do not keep the invoices because you do not declare the income tax (IR) because your salary does not exceed $1,000.

He admits that he does not want to carry out this procedure because he sees it as “tedious”. He hasn’t paid the foreign exchange exit tax (ISD) and ensures that it has been “saved”. A few months ago he traveled abroad with $1,500 to vacation. This tribute is paid by those who take out of the country more than what is allowed, which is $1,275, that is, three unified basic salaries.

VAT, IR, ISD, as well as the special consumption tax (ICE) and other taxes are those that are commonly paid by natural personsthose national and foreign citizens who carry out economic activities in the country, such as workers under a dependency relationship, those who invoice and others.

Those who invoice already calculate their income tax impact with a new scheme: this segment has a small advantage

According to specialists, Although the taxes are according to the activity that a person executes, there are taxes that are applied to the majority of citizens under the figure of a natural person and not everyone is familiar with the process.

Jorge Calderón, economic analystindicates that it is important review the invoices to identify which taxes are being paid. In addition, he says that there are cases in which people see the final value and do not pay attention to the details.

For example, José has contracted the service of streaming and until talking to this newspaper he had not realized that each month he paid $1.32 as VAT.

Instead, Maritza, a housewife, stopped paying taxes for the plastic covers considered in the ICE.

For each bag, Maritza paid $0.08, which was $0.24 a week, which means that she usually carried three bags. She now she carries her bag.

Calderón points out that both VAT and ICE are immediate taxes. with which he agrees Diego Zambrano, Tax Corporate Consulting Managerwho highlights the importance of knowing what products or services are taxed with ICE. These are energy drinks, soft drinks, beers, club memberships, plastic covers, perfumes, prepaid television, vehicles and others.

According to the Internal Revenue Service (SRI), for ICE, between January and May 2022, more than $357 million was collected.

‘I pay credit cards, my children’s education, gasoline and now $150 a month for income tax. This is very strong,’ says the worker who has spent several months withholding tribute in Ecuador

As regards VAT, a little more than $662 million only in May. And in the five months of the year it is already counted $3,282 million.

Another tribute of immediate and common collection is the I.S.D., explain Calderón and Zambrano. This is detected when money is sent abroad through couriers or financial entities; when cash withdrawals are made outside the country; buy goods or services or when traveling with cash.

In the case of traveling with money abroad or making transfers abroad, the person is free to pay the tax if he withdraws up to $1,275. And in situations of purchases with a credit card, they are free from ISD if they do not exceed $5,109.79 per year.

That’s why, Calderón points out that account statements are essential to be aware of the tax burden.

The collection of this tax, according to SRI figures, is more than $539 million in the last five months. January, February and April are the months whose collection exceeds $100 million.

“I almost had a spill when I saw the credit card bill,” says a user who forgot the end of the grace months: in Ecuador, credit card consumption in December was $ 891 million

The specialists make a difference with income taxwhich this year includes a new tax collection scheme.

This is withheld month by month for workers under a dependency relationship. They, at the end of the fiscal period, will be able to know if they can access the tax credit, that is, a deduction of 10% or 20% of the $ 5,037.55, which is the limit for health, housing, food, education expenses. , clothing and tourism.

It is canceled in 2023according to the ninth digit of the ID or RUC. This schedule is published by the SRI on the web.

For this same tax there are those who invoice, within the segment of natural persons. These, according to Zambrano, can add more personal expenses, according to economic activity and pay the tax in 2023.

“Although you could pay it as soon as you make a sale and in the case of the final consumer, they do not withhold it, but the IR is always settled annually,” emphasizes Zambrano.

This way you can calculate the income tax in Ecuador and know if it applies to a reduction

Income tax is the second tax with the highest collection, after VAT. The first five months of the year were raised $2.785 million. In April more was withheld with $1.185 million. The other months are below $400 million.

In individuals withheld more than $146 million; in legal entities more than $892 million; in terms of inheritances, legacies and donations it was more than $3 million.

Meanwhile, there are other common taxes on natural persons such as property taxes and contribution to comprehensive cancer careknown as Solca.

The property taxes, according to experts, are the tax that is charged on real estate that is in a city. This is canceled between January 1 and December 31 of each year, according to the Organic Code of Territorial Organization, Autonomy and Decentralization.

Price reduction on electric and hybrid vehicles valued at more than $35,000 will be reflected in 2022

However, there are municipalities that contemplate discounts of 10% if paid in the first fortnight of January or 1% until the end of June, in the case of the Municipality of Quito.

In credit cards there is also another item, whose value depends on the amount used. For example, one of Ronny’s credit card statements showed $0.11 per contribution to Solca; in another he was debited $0.77.

“This collection is immediate and that is when we acquire a loan,” explains Calderón.

What are the problems that keep Ecuadorians awake at night?

More than $82 million has been raised so far. Calderón considers that in the country there are enough taxes and consumption is not encouraged.

“The tax burden is high and collection can be more efficient by seeking more people to move from informality to formality”note.

While Zambrano believe there is enough segmentation. “There is a lot of tax segmentation and it is very difficult for people to know what they are subject to. What is missing is simplification. In other countries the rates are high, because they are simplified and where the declarations are quick. Here you need to have someone to explain it to you,” she says. (YO)