These are the changes to the 2022 Personal Expense Projection Form

It is a fact, during January the natural persons with dependency relationship they must present a projection of personal expenses in Ecuador –if they earn more than $11,310 per year onwards– until next January 31.

The form goes hand in hand with the calculation of income tax in the country; however, as of this year there were some changes which should be taken into account, explains the portal Bloomberg Line. You can download the form by clicking the link.

What changed?

• Although the tax law, which came into force on November 29, eliminated the benefits of deduct personal expenses, filling out the form will help Pay less Income tax.

How will the withholding of income tax to workers, presentation of projection of expenses and annexes, according to Regulations of the Economic Development Law

• It is estimated that until 2021 the limit for the deduction of personal expenses was $ 14.575,60, figure that has rotated. It is currently from $ 5.037,55, Which is equivalent to seven basic family baskets. In addition, the current benefit is that 10% or 20% of income tax could be deducted from that amount, depending on each case.

• If the citizen earn less than $24,090.3 per year, you can deduct up to $1,007.51 from your income tax, that is, 20% of the out-of-pocket limit.
• If the employee earns more than $24,090.3 per year, the income tax discount will be a maximum of 10%, that is, $ 503,76.
• Workers in a dependency relationship they can update their personal expenses in the months of July or August, or at any time of the year in case your compensation varies. There could also be the case if projected expenses are higher than those estimated to be made.

What personal expenses count on the form?

It is worth mentioning that taxpayers they can concentrate all their deduction of personal expenses in a single item, the same as is considered an important change within the regulations. In addition, users must remember that the sales receipts that support personal expenses must be kept for seven years.

This is the income tax table that the 2022 personal expenses projection will help calculate

• Health: medicine, doctors and health insurance.
• Feeding: food and alimony.
• living place: lease or payment of interest for own housing, basic services, property tax.

• Sightseeing: tour packages, accommodation, air, sea and land transportation within the national territory.
• Clothing: Clothes and shoes.
• Education: includes expenses incurred in art and culture, as well as school supplies, tuition, uniforms. (I)