Taxing certain digital services is an alternative that is analyzed, says deputy minister

Fabián Carrillo, Vice Minister of Economy and Finance, pointed out that the Government is seeking a tax reform that simplifies compliance with citizens’ obligations, facilitates economic activity and allows both natural and legal persons to better comply with their obligations to the Treasury. .

“The goal of raising revenue by 2020 is about one and a half points of gross domestic product (GDP),” the official said in an interview with a local newspaper. He added that, with these elements, alternatives are being discussed, including the issue of exemptions and taxing certain digital services.

However, Carrillo stressed that “they are still alternatives that are being analyzed.” He said that the responsible from the technical point of view is to evaluate all the options that the current economic and tax structure of the country has and, on that basis, to put before the consideration of the President of the Republic, Lenin Moreno, which are the best alternatives. In the opinion of the vice minister, digital services are activities that have to be formalized.

“There are cable television service providers in our economy that offer their domiciled services, complying with local regulations, in tax, labor, corporate, etc. terms. So that formalization that some companies have, we should look for other providers that are present in our economy, for example the case of Netflix, “he said. He explained that this concept of formalization, which applies economically, is not new for the region. He mentioned that in countries like Uruguay the income generated by this type of company is taxed.

While in Colombia and Chile it is collected through taxing consumption. «In terms of technical management, they are options that must be put on the table, because they also allow equal conditions in the same market.

I refer to the current companies that are providing, for example, cable services and others that do not, “said Carrillo. Theoretically, he added, “it makes sense that this economic activity – which actually exists and many of us pay through our credit cards – must also comply with a tax regime.

It’s a matter of common sense. ” Regarding the possible collection of taxes for digital services in Ecuador, Uber said in a statement that “we are open to comply with the regulations of the countries where the application is available and to contribute to local economies in accordance with the tax provisions that apply.”

The company expresses its willingness to discuss with the Government the scope of the announced measure and consolidate the regulation of the private transportation service mediated by digital platforms.

The proposed tax reform has an advance of 85%, reiterated Deputy Minister Carrillo. It is expected to be sent to the Assembly in the coming months.

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/gravar-serviciosdigitales-alternativa