In at least four areas, companies could additionally deduct income tax (IR), if they support the fight against chronic child malnutrition.
According to the Technical Secretariat, Ecuador Grows Without Child Malnutrition, these topics are: water and sanitation system, complementary programs to health services that are aimed at pregnant women and children under two years of age, complementary programs to child development social services and campaigns for educommunication.
MIES plans to expand the voucher coverage to reduce child chronic malnutrition to 67,500 beneficiaries
With the reformed Law for Economic Development and Fiscal Sustainability, it was established that sponsorships granted to non-profit institutions, whose activity focuses on the eradication of child chronic malnutrition, previously qualified by the governing institution, can benefit from an additional deduction of up to 150% for the calculation of the tax base of the IR.
There are five steps to apply:
-Non-profit organizations present projects.
-A sponsor selects a project to finance in whole or in part.
-Sign a letter of commitment for financing.
-The sponsor benefits from the reduction.
-The non-profit entity will receive support and a final project report will be presented.
Erwin Ronquillo, head of the Technical Secretariat, explained that a mechanism has been developed in conjunction with the ministries of Health, Economic and Social Inclusion (MIES), Education, and Environment, to implement this tax incentive.
It is directed, he said, so that private companies, natural and legal persons, entrepreneurs, professionals, can join this governmental cause.
Government indicates that it is paving the way so that chronic child malnutrition does not exceed 10% in 8 years
Each ministry, he added, qualifies the project within its powers and then it will be uploaded on a platform of the Technical Secretariat.
“The donor will be able to see in which project he wants or wants to donate, he wants to sponsor. Once the sponsorship is made, the funds are delivered, the non-profit organization will provide a receipt, an invoice, with that invoice, the businessman goes to the MIES, which is the one who delivers the certifications, and already with that certificate , you can make use of the additional deductibility in your next tax period,” he said.
There is no minimum contribution amount, but there is a quota of the total number of projects that can be submitted each year. By 2023, up to ten million dollars in projects can be approved to be financed by the private sector.
In Guayaquil, random sampling is done to measure levels of child malnutrition
Ronquillo -he said- that within the government strategy, they are already reaching 640,000 mothers and their children who receive preventive care, improving their diet and growing according to their age.
In Ecuador, the first national survey on child malnutrition is carried out by the National Institute of Statistics and Censuses (INEC), whose first results will be presented in the coming days, although the investigation would end in July of this year.
The INEC reported that around 160 interviewers visit approximately 447,042 homes identified with children under 2 and 5 years of age. (YO)
Source: Eluniverso
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