2024-04-03 09:07:42
The Law for the Strengthening of Tourist Activities and Promotion of Employment It is already in force. A month ago, when the minister of Turismo presented the proposal, showed it as a tool to promote the realization in Ecuador the rest concerts of international artists.
Initially the minister’s approach Niels Olsen was to exempt 25% of the withholding tax at source Income tax (IR) for those who organize artistic and cultural shows, however, the proposal was modified in Parliament. The tribute did not disappear, but rather decreased. It went to 15%but only if the recipient does not reside in states considered tax havens or with preferential tax regimes.
In simpler terms, if an international artist charged a million dollars to offer a concert in Ecuador, USD 250,000 would go to the State. The event organizer had to retain that amount, which then had to declare it to the Internal rents service (SRI). Based on this same example, it would now be $150,000.
In interview with Ecuavisa.com, Christian Del Alcazar Poncemanager of Top Shows, a company that has organized in Quito recitals of Chayanne, Miguel Bose, Carlos Vives, Sebastian Yatra, among others, explains that the artist finally ended up being paid what he asked for. But he adds that with others – he did not give names – they did not even try to negotiate, because their rates were very high and, after taxes and the costs of the organization, the economic benefits were not attractive.
Del Alcázar describes the reduction of withholding at the source of IR as a great advance, however, he emphasizes that This new regulation is not enough to hold more concerts. He adds that the crisis of violence and insecurity and the internal armed conflict They are factors that work against the organization of massive shows.
Note, for example, that in Guayaquil, due to the internal armed conflict, massive shows are only held with half the capacity. Additionally, there are more than 30 cantons in the country where a curfew from 01:00 to 05:00. This measure also affects the holding of concerts.
On the other hand, he considers that there is a lack of suitable venues for holding concerts.
About USD 3.2 million for Luis Miguel’s concert
Last February 21 was the presentation of Luis Miguel in Quito. It was the last recital by a world-famous artist offered in Ecuador. His show was also in suspense due to the internal armed conflict.
According to estimates from the Ministry of Tourism, that recital moved about 3.2 million dollars among participants in the capital’s tourism industry. He highlighted that approximately 30% of those attending did not reside in Quitowhich benefited, for example, air and land transportation, and hotels, among other accommodations.
According to Tourism, in Ecuador there are 52 tourism service providers registered as event organizers.
On the agenda are the concerts of Manna, On April 20; and that of Andres cepeda y Santiago Cruz, May 31. Both will take place in Quito. Last year, due to the context of violence, the recital of Gloria Trevi it was cancelled. And this year, the group Camilawhich had a presentation scheduled in the capital of the Republic, also suspended its show.
Usually, world-famous artists do not include Ecuador in their international tours. They choose other countries in the region such as Colombia, Peru, Argentina or Brazil for their presentations.
By: Ecuavisa