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Deduction of income tax in Ecuador, tied to family responsibilities
Posted On 06 Nov 2017
Ecuadornews:
The less family burden a taxpayer has, the more income tax he will pay. This is what the Government proposes in its Economic Reactivation bill, sent to the Legislature last Wednesday as an economic urgency.
According to the initiative of President Lenin Moreno, natural persons may deduct their personal expenses without paying the value-added tax (VAT) and the special consumption tax (ICE), as well as those of their family burden up to 50% of their total taxable income, without that percentage exceeding the values related to the basic tax-deductible portion of the IT ($ 11,290 for 2017) established by the Internal Revenue Service.
Currently, a taxpayer with a high annual income can also deduct the highest value of personal expenses whether he has burdens or not, therefore, his IT payable is lower.
Those who have monthly incomes of up to $ 1,039.02 will not pay the IT and do not have the obligation to deduct personal expenses because after subtracting their social security contribution, their income will not exceed $ 11,290.
If the law is approved, in 2018 the IT a natural person with high annual income will pay will depend on a number of burdens he has. (I)
Source: http://www.eluniverso.com/
