Daniel Noboa’s tax reform was published in the Official Registry and is now in force

The tax reform approved on December 19, 2023 in the National Assembly was already published in the Official Registry on December 20, 2023.

Assembly Development Commission analyzing the tax reform on December 5, 2023.

The tax reform called the Law of Economic Efficiency and Employment Generation, which was approved on December 19, 2023 in the National Assembly, was published in the Official Registry on the afternoon of December 20, 2023. With this, the law has already entered into force validity.

With this new law, a new amnesty or remission of interest, fines and surcharges will be made to debtors of the Internal Revenue Service (SRI).

Thus, taxpayers who pay all overdue debts will receive 100% forgiveness of interest, fines and surcharges.

To access this tax forgiveness, the taxpayer must pay the principal of their debt within a maximum of 150 days from December 20, 2023.

In addition, the new law includes tax incentives, such as greater expense deductions to pay less Income Tax, for companies that create new jobs.

Some of the incentives are:

• The taxpayer who generates a net increase in jobs for young people between 18 and 29 years old, as well as for people obliged to pay alimony, will have an additional deduction of 50% with respect to the expense of salaries on which they have contributed to social security.
• The additional deduction will be 75% if the new job positions are for young graduates or graduates of public universities and higher technical, technological, pedagogical, arts and higher conservatories institutes or public, municipal or public educational institutions.
• The taxpayer who reports a net increase in jobs for the construction and agriculture sector will have an additional deduction of 75% with respect to the expense of salaries on which they have contributed to social security.
• The company that generates a net increase in jobs for people who have served a prison sentence of more than one year will have an additional deduction of 75% with respect to the expense of salaries on which they have contributed to social security.