2024-04-16 14:52:32
The Organic Law for the Strengthening of Tourist Activities and Promotion of Employment came into effect this March 25, with its publication in the Official Registration. This is the fifth urgent economic proposal by President Daniel Noboa, which was approved by the National Assembly.
He approved text for him Legislativeon March 21, is what appears in the regulations, since the President sanctioned it favorably and ordered its immediate publication, without a veto.
What does the Law contain?
It is a regulations with 38 articles, eight general provisions, nine transitional provisions, two reforms, one interpretative and one repealing. However, it does not only address changes in tourism.
Tourism development fund
Have the resources to do promotion and activities that allow the development of the sector was one of the main requirements of representatives of the union.
The Law provides the creation of the fund and determines what will be administered by the Ministry of Tourism. The resources will be collected from the Ecodelta and Tourist Power rates.
Exemption from ISD and reduction of Income Tax
The payments you make national airlines Abroad they are exempt from the Foreign Exchange Exit Tax. Also foreign airlines that operate domestic or international flights.
In addition, tourism service providers that make payments abroad for the production of artistic and cultural shows in Ecuador will have a withholding at the source of the Income Tax of 15%.
Less VAT on holidays
By decision of the President, the Value Added Tax (VAT) can be reduce to 8% for tourist activities during local and national holidays. It will apply on the weekends that precede or follow the holiday and may not be more than 12 days a year.
They will be able to access this benefit all tourist servicessuch as: accommodation, food and drinks, transportation mainly dedicated to tourism, operation, intermediation and agencies, etc.
Financial relief and reduction of fuel payments
Tourism providers will receive credits with preferential interest rates and terms; even grace periods.
The benefits must also be applied to outstanding loans to establishments affected by natural phenomena or social crises, in places where a state of emergency has been declared.
They will also benefit from the elimination of the 5% per gallon airlines pay for aviation fuel and lubricants.
Income Tax Deduction for security expenses and payment facilities with the SRI and the IESS
Tour operators that are registered in the National Tourism Registry may reduce a 50% additional of what has already been calculated, the expenses incurred for security. This amount will be deducted in the payment of Income Tax
In addition, operators registered in the same registry, who have not been able to comply with their tax obligations with the SRI until 2023, will be able to access payment facilities and cancel them in a maximum of 24 months.
The same model will be applied for those who have not been able to pay reserve funds, contributions and employer responsibilities with the IESS. Those who have these debts until March 25, 2024 will benefit.