#TIE = 'This is Ecuador' and as my old Relocation Guide to Ecuador used to pound into my head:)

• 'To Always allow for the #EcuaFactor '

"Paying Taxes in Ecuador --
First, disclaimer, I am not an accountant or tax attorney and the information I am sharing is just a courtesy and not a service.

That being said --

There seems to be a major level of concern by expats regarding the Impuesto a la Renta (Income Tax) in Ecuador this year.

Tranquilo, it is Ecuador -- this is not a new law, it has always existed, and if you earn an income here in Ecuador that is paid in Ecuador then yes, as always, there is an income tax.

It does not effect most expats because they are either receiving income from pensioner or social security benefits that are paid by heir country of origin. If you work online, then chances are you are paying taxes

and other requirements from income that is connected to either the country of the company you work with or the company through which you receive your payments.

If you work in Ecuador, get paid in Ecuador, or earn funds through income property or businesses in Ecuador, then you pay Ecuador income tax.

How much do you need to pay if you fit into the second category above?

That information is published widely including here:

https://www.primicias.ec/noticias/economia/impuesto-renta-declaracion-marzo2024

Has the rate increased? Yes, due to higher costs in security for the country.

But what about paying in time?
Tranquilo -- this is Ecuador -- and the rates while agreed on for the most part are still being hashed out by the various groups and parties that make up the robust legislature of Ecuador.

No one wants to pay more, and many can't pay more, and it will take some time to get everything sorted out and into whatever computer systems will be recording payments.

So what does this mean for everyone?
There may be a change in your future where you might have to pay something for income gained in country.

But like everything in Ecuador, it won't happen overnight and it will change and evolve a number of times before being codified and enforced.

Finally -- a word of warning and advice (take it or leave it as you feel fit): Whenever there is a change that gets big coverage and elicits grave concern amongst the expats,

especially the newer ones, there will appear an entire instant-industry to give advice, help with the paperwork, and generally grift off the anxiety of the masses. Don't fall for it.

Take advantage of any information being provided to your community but do not automatically assume what you are being told is correct, legally sound, or applicable to your situation.

A lot can happen and for the most part until the situation is clearly outlined such that the common man of Ecuador can comprehend the rules, it is very unlikely for the rules to be strictly enforced.

And honestly Ecuador lacks the manpower for enforcement with most of Ecuador's energy going back to the cause of this tax hike, the situation with drug cartels, which takes upon the majority of the of the country's attention and energy at this time." - by the SS agent🪖