2024-04-17 16:41:39
On March 31, 2024, the deadline expires for companies that have generated profits in 2022 to pay a temporary tax of 3.25% on those profits. This is part of the law that will also allow VAT to be raised to 15% from April 1. Micro and small businesses are excluded from payment of the temporary security contribution.
He Internal Revenue Service (SRI) remembered that the call temporary security contribution (CTS)established in the Organic Law to confront the Internal Armed Conflict, the Social and Economic Crisismust be declared and paid until March 31, 2024.
In other words, medium and large companies, which obtained taxed income during fiscal year 2022, and which have obtained taxed profits as a result, have 7 days to disburse 3.25% of that profit as a temporary tax.
This contribution is declared through the “Declaration and Payment for Temporary Contributions” form.
Excluded from the declaration and payment are: banks, Cooperatives of saving and credity micro and small businesses. In the case of banks and savings and credit cooperatives, a specific temporary tax on profits was created that must also be paid until March 31, 2024.
Through Resolution No. NAC-DGERCGC24-00000009, the SRI issued the rules for the declaration and payment of the temporary security contribution and the contribution on the profits of banks and savings and credit cooperatives, established in the Organic Law to Face the Internal Armed Conflict. You can access the resolution at www.sri.gob.ec.
According to an estimate of the Chamber of Commerce of Quito (CCQ)up to 10,000 medium and large companies would have to pay the temporary security contribution.
The activities of these companies include trade, mining and quarrying, manufacturing, financial and insurance activities, and agriculture, livestock, forestry and fishing, among others.
It has been estimated that an additional collection of $326 million will be generated by the temporary security contribution.
If we add the increase in VAT to 15%, the temporary tax for banks and cooperatives, the increase in the Foreign Exchange Outflow Tax (ISD), self-withholdings for large companies and tax remission, the Government of Daniel Noboa it would have $4,327 million of extra income in 2024. (JS)