Newsletter May 2020 ECUADOR
Summary of new measures taken in Ecuador by COVID-19 A new law for humanitarian support has been proposed, the second draft of which establishes the following rules to be discussed: •
Creation of a humanitarian contribution by every natural person whose net income is greater than $ 720, according to a progressive table, for the period of 9 months.
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You can reduce the contribution if you had a loss of 70% of sales.
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Prohibition of suspension of students from educational institutions for lack of payment; In addition, financial aid for institutions that reduce pensions by 20%.
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Prohibition of eviction for 60 after confinement, with exceptions, of tenants, only if they get to pay, at least 20% of the amounts owed.
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You can request payment facilities for three months.
For 6 months, the increase in the values of basic services, including telecommunications, is prohibited. Termination for two months is also prohibited.
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If you had net sales losses greater than 30%, you do not pay the tax.
Prohibition of suspension of policies and medical coverage for non-payment.
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Extension of social security coverage for an additional 60 days to workers who lose their jobs.
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A 50% reduction is established for people with disabilities and for those who have been seriously affected by the COVID-19 crisis. Employees of the executive branch (president, cabinet, etc.) will contribute 50% of their monthly salary, except for agents in the medical sector.
Creation of a humanitarian contribution of 5% of its taxable profit or available profit (whichever is greater) to companies with profits greater than $ 1,000,000.00.
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For all contributions: (i) will be fined 1.5% monthly of the undeclared values. (ii) What is paid by contribution can be used as a tax credit from 2022, but not as a deductible expense nor can a refund be requested.
Employers will be a tax withholding agent.
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You can ask for payment facilities if six months.
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Creation of a contribution of 2% of the value of real estate and representative capital rights in Ecuador of taxpayers residing in tax havens.
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They can also access unemployment insurance.
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