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Year II-# 405
Quito, Monday, December 29, 2014
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ING. HUGO DEL POZO BARREZUETA DIRECTOR
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At the service of the country from the 1st of July 1895
S U P L E M E N T O
INCENTIVES
INCENTIVES
TO PRODUCTION
AND PREVENTION
TAX FRAUD
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PRESIDENCY OF THE REPUBLIC OF ECUADOR
Ofi cio No. T. 7140-SGJ-14-951
Guayaquil, December 23, 2014
Lord Engineer Hugo E. del Pozo Barrezueta DIRECTOR OF THE OFFICIAL REGISTER In his office
Of my consideration:
With office number PAN-GR-2014-2717, 22 December 2014, Mrs. Gabriela Rivadeneira Burbano, President of the National Assembly, referred to the Constitutional President of the Republic the Organic Law of Incentives to Production and Prevention of Tax Fraud, of urgent economic matter, that the Legislative Function discussed and approved.
El Salvador] This law was sanctioned by the president today, so that, in accordance with the provisions of Articles 137 of the Constitution of the Republic and 63 of the Organic Law of the Legislative Function, I refer to you the aforementioned law in original and in certified copy each, as well as the certificate of discussion, for its corresponding publication in the Official Register.
Additionally, please thank you that once the respective publication has been carried out, it will be used original copies to the National Assembly for relevant purposes.
Attentive,
f.) Dr. Alexis Mera Giler, LEGAL SECRETARY GENERAL.
REPUBLIC of Ecuador
NATIONAL ASSEMBLY
CERTIFICATION
I allow you to CERTIFY that the National Assembly discussed and approved the ORGANIC INCENTIVE BILL PRODUCTION AND PREVENTION OF TAX FRAUD, in the first debate on 15 December 2014; and, in the second debate on 22 December 2014.
Quito, 22 December 2014.
f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
REPUBLIC of Ecuador
NATIONAL ASSEMBLY
THE PLENO
CONSIDERING:
What, in Article 3, number 5 of the Constitution of the Republic establishes that it is the primary duty of the State to plan national development and eradicate poverty, promote sustainable development and equitable redistribution of resources and wealth to access good living;
Article 284 (1), in accordance with the numeral 7 of the said Article of the Constitution of the Republic, points out as objectives of economic policy to ensure an adequate distribution of income and national wealth, as well as to maintain economic stability, understood as the maximum level of production and employment
What, Article 261 of the Constitution of the Republic of Ecuador states that the Central State shall have exclusive competence over economic, tax and financial policy;
What, Article 283 of the Constitution of the Republic establishes that the economic system is social and solidarity; recognizes the human being as a subject and fi; it proposes a dynamic and balanced relationship between society, state and market, in harmony with nature; and, it aims to guarantee the production and reproduction of the material and immaterial conditions that make it possible good living;
That, Article 300 of the Constitution of the Republic of Ecuador, establishes the principles of the tax system, prioritizing direct and progressive taxes. The tax policy will promote redistribution and stimulate employment, the production of goods and services, and responsible ecological, social and economic behaviors;
That, in accordance with the National Plan for Good Living, is a duty the State's primary objective to promote the equitable redistribution of resources and wealth, to encourage investment and to promote equitable access to factors of production, financial resources, technology and knowledge;
tax is a fundamental instrument of economic policy, which in addition to providing State resources, it allows to stimulate investment, saving, employment and the distribution of wealth; contributing to economic stability; regulating harmful health behaviors and encouraging activities that preserve the environment;
That, article 306 of the Constitution of the Republic has the state obligation to promote environmentally responsible exports, with preference of those
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generating increased employment and added value, and in particular exports of small and medium-sized producers;
What, the principle of the transparency of the tax system requires the effective exercise of the faculty of management of the taxes, by means of rules and instruments that promote the prevention of tax evasion and avoidance, at national and international level, disincentivising harmful practices of financial planning;
What, Article 301 of the Constitution of the Republic of Ecuador determines that, only on the initiative of the Executive Function and by law sanctioned by the National Assembly, it will be possible to establish, modify car, exonerate or to extinguish taxes. Only by regulatory act of a competent body may they be established, modified, exonerated and extinguished fees and contributions, and that special rates and contributions shall be created and regulated in accordance with the law; and,
The faculties that I confi ere to article 140 of the Constitution of the Republic, issue the following:
ORGANIC LAW OF INCENTIVES TO THE PRODUCTION AND PREVENTION
OF THE TAX FRAUD
CHAPTER I REFORMS TO THE CODE TRIBUTARY
Article 1.- In Article 29, practice the following reforms:
1. Replace "; and," in the final part of the second paragraph of the numeral 1 by ",".
2. Replace the end of the numeral 2 with the point by "; and,".
3. Add the following to the numeral 2, a numeral with the following text:
" 3. The taxpayer's substitutes, in the understanding of the persons who, when a tax law so provides, are placed in place of the taxpayer, being obliged to comply with the material and formal benefits of the tax obligations. "
Article 2.- In Article 152 replace the number 4 by the following:
" 4. Indication of the security by the difference of the obligation, in the special case of the following article, normalized according to the resolution that the Tax Administration issues for the purpose. "
Article 3.- In the first paragraph of Article 153 replace the word "six" with "twenty and four" and in the second paragraph replace the word "two" with "four".
CHAPTER II REFORMS TO ORGANIC LAW
INTERNAL TAX REGIME
Article 4.- Following Article 4 add the following:
" Art 4.1.-Natural persons ' natural residence.-They shall be considered to be resident in Ecuador, in reference to a financial year, natural persons who are in one of the following conditions:
a) When their stay in the country, including sporadic absences, is One hundred and eighty-three (183) calendar days or more, consecutive or not, in the same financial period;
b) When their stay in the country, including sporadic absences, is one hundred and eighty-three (183) calendar days or more, consecutive or not, within a period of twelve months within two financial periods, unless you credit your residence fi (c) For the corresponding period in another country or jurisdiction.
In the event that you accredit your financial residence in a financial paradise or lower tax jurisdiction, you must prove that you have remained in that country or jurisdiction at least one hundred Eighty-three (183) calendar days, consecutive or not, in the corresponding financial year. In the event that a resident in Ecuador subsequently accredits his or her financial residence in a financial paradise or jurisdiction of lower taxation, the latter will maintain the quality of the financial resident in Ecuador up to the four financial periods. subsequent to the date on which it ceased to meet the conditions to be resident mentioned in the preceding literals, unless it proves that it has remained in that country or jurisdiction at least one hundred and eighty-three (183) calendar days, consecutive or not, in the same financial year;
c) The core core of its economic activities or interests radiating in Ecuador, directly or indirectly.
A natural person will have the main core of its economic activities or interests in Ecuador, provided that it has obtained in the last twelve months, directly or indirectly, the higher income value for any other country, valued at the average exchange rate of the period.
Similarly, a natural person will be considered to have the core core of his economic interests in Ecuador when he higher value of its assets is in Ecuador;
d) It has not remained in any other country or jurisdiction more than one hundred and eighty-three (183) calendar days, consecutive or not, in the financial year and its closest family ties keep them in Ecuador.
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Art. 4.2.-Residence of company.-A company has a financial residence in Ecuador when it has been constituted or created in Ecuadorian territory, in accordance with national legislation.
Art. 4.3.-Residence.-In the terms of the present Title, they shall be construed as "residence of the taxable person".
Article 5.- In Article 8, make the following reforms:
1. Add the following text to the following text:
"3.1. The utilities that are collected by companies domiciled or not in Ecuador and natural, Ecuadorian or foreign persons, residents or not in the country, from the direct or indirect disposal of shares, shares, other representative rights of capital or other rights allowing the exploration, exploitation, granting or the like; of companies domiciled or permanent establishments in Ecuador. '
2. Replace the number 10 with the following:
" 10. Any other income collected by national or foreign natural or foreign companies resident in Ecuador, including the non-justified equity increase. "
Article 6.- In Article 9, make the following reforms:
1. Add the following:
"This exemption does not apply if the cash benefit, in the terms defended in the regulation, is a natural person resident in Ecuador."
2. Remove the text ", actions, or shareholdings" in the numeral 14.
3. Replace the first paragraph of the numeral 15 by the following:
" 15.-The income obtained by the commercial business, provided that they do not carry out business activities or operate businesses in progress, as defined by the Article 42.1 of this Law does not provide for any of the constituents or beneficiaries to be natural persons or resident societies, constituted or located in a financial paradise or jurisdiction of lesser taxation. In addition, the revenue from the investment funds and additional funds will be exempt. "
4. In the first indent of the numeral 15.1. following the sentence "Yields for fixed term deposits paid by national financial institutions to persons
natural" remove the phrase " and companies, except institutions of the financial system "; and, following the phrase" obtained by natural persons "remove the phrase" or societies ".
5. In the second indent of the numeral 15.1. following the phrase "Similarly, the benefits obtained by natural persons" eliminate the phrase "and societies".
6. The final subparagraph of paragraph 15.1 shall be replaced by the following: " Neither where the depositors, constituents or beneficiaries are natural persons resident or located in a financial paradise or jurisdiction of lower taxation. '
7. Add the following numerals below the numeral 20:
" 21. Non-reimbursable direct economic transfers that the State hands over to natural persons and societies within agroforestry, reforestation, and similar plans and programs created by the State.
22. The financial returns originated in the Ecuadorian public debt. "
Article 7.- Add a new article in the following article that says:
" Art. 9.2.-In the case of new and productive investments in the economic sectors determined as basic industries in accordance with the Law, the exemption from the payment of the income tax shall be extended to ten (10) years, counted from the first year in This is the case for direct attributable income and only for the new investment. This period shall be extended by two (2) years if such investments are made in border cantons of the country. "
Article 8.- In Article 10, highlight the following reforms:
1.-At the beginning of the second paragraph of the numeral 2 the sentence " Will be deductible the costs or expenses derived from commercial lease contracts or leasing, in accordance with the relevant accounting technique. 'and replace the phrase' fees or charges 'with' costs or expenses ', and the phrase' the price of the purchase option is not equal 'for' the price of the purchase option is greater or equal '.
2.-At the end of the numeral 7 add the following point:
"When a taxpayer has proceeded to the revaluation of assets, the depreciation corresponding to that revaluation shall not be deductible."
3.-In numeral 9, carry out the following reforms:
a.-In the second paragraph of the numeral 9, delete the final point and add the following: ", and in accordance with the law."
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b.-Incorporate a paragraph after the fifth, which says:
" Deductions that correspond to social benefits and benefits over the To be provided to the Ecuadorian Social Security Institute, for payments to older adults and returned migrants over 40 years of age will be deducted with an additional 150% for a period of two years from the date of the conclusion of the contract. "
4.-Replace the third indent of the numeral 11, and the conditions set out in it, by the following:
" The elimination of the non-performing credits from the non-performing credit shall be carried out in accordance with this provision and the results of the financial year in the part not covered by the provision, where the conditions laid down in the Regulation have been met. '
5.-Replace in the numeral 17 the sentence: "for the period of 5 years, the medium-sized enterprises," by the phrase: "for the period of 5 years, the micro, small and medium enterprises".
6.-Replace the number 2 of the numeral 18 by the following:
"2) Costs or expenses arising from lease or leasing contracts, in accordance with generally accepted accounting and financial rules and principles."
7.-Add the following numerals to the end of the article:
" 19. Costs and expenses for promotion and advertising in accordance with the exceptions, limits, segmentation and conditions set out in the Regulation.
The costs and expenses for promotion and advertising shall not be deducted from those taxpayers who market foods prepared with hyperprocessed content. The criteria for this and other derogations to be laid down in the Regulation shall be considered to be the technical reports and the health authorities ' decisions where appropriate. "
20. Royalties, technical, administrative and consultancy services paid by companies domiciled or not in Ecuador to their related parties will be deductible according to the limits that for each type or as a whole is established in the Regulation for the implementation of this Law. "
Article 9.- Below Article 10 add the following unnumbered item:
" Art. (...).-Deferred taxes.-For tax purposes the recognition of deferred tax assets and liabilities is permitted only in cases and conditions that are established in the regulation.
In case of divergence between the rules Tax and accounting and financial rules, the former shall prevail. "
Article 10.- Replace the third indent of Article 11 by the following:
" The deduction of losses by direct or indirect disposal of financial assets or streams, shares, shares, other rights shall not be accepted representative of capital or other rights allowing the exploration, exploitation, granting or the like; of domiciled companies or permanent establishments in Ecuador, where the transaction takes place between related parties or between the society and the partner or their spouse or their relatives within the fourth degree of consanguinity or (a) second of the term, or between the taxable person and his or her spouse or relatives within the fourth degree of consanguinity or second degree of claim. "
Article 11.- Replace Article 12 with the following:
" Art. 12.-Depreciation. -the amortisation of the securities to be recorded as assets, in accordance with the accounting technique, for amortisation in more than one tax year, and which are necessary for the purposes of the business or activity, shall be deductible;
the case of intangible assets which, in accordance with the accounting technique, are to be amortised, such depreciation shall be effected within the time limits laid down in the respective contract or within a period of 20 years. (20) years; impairment of intangible assets with indefi nida useful life will not be deductible.
the tax year in which the business or activity is completed shall be made the appropriate adjustments with the purpose of amortising the whole of the investment. '
Article 12.- In Article 13 you make the following reforms:
1. Replace the number 6 by the following:
" 6.-Payment by transfer or reinsurance premiums, under the following conditions:
(a) 75% of the sale or reinsurance premiums contracted with companies that do not have an establishment permanent or representative in Ecuador, where they do not exceed the percentage indicated by the insurance regulatory authority; and,
b) 50% of the sale or reinsurance premiums contracted with companies that do not have permanent establishment or representation in Ecuador, when they exceed the percentage indicated by the regulatory authority insurance.
In all cases in which the insurance company abroad is a resident financial resident, it is constituted or located in financial havens or jurisdictions of lower taxation, due to the payment made will be retained in the source over 100% of the contracted transfer or reinsurance premiums. '
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2. Replace in the numeral 9 the phrase "the fees or charges" for "costs or expenses".
Article 13.-At the end of Article 19 add the following point:
For tax purposes, associations, communes and cooperatives subject to the supervision of the Superintendence of the People's Economy and Solidarity, with the exception of the institutions of the popular and supportive financial system, may keep accounting records in accordance with simplified rules laid down in the regulation. "
Article 14.- Below Article 26 add the following unnumbered item:
" Art. (...) How to determine the usefulness in the disposal of shares or other representative capital rights.-The utility in the disposal of shares or other representative capital rights will be calculated as follows:
taxable income corresponds to the actual value of the disposal.
The deductible cost shall be the nominal value, the acquisition value, or the proportional equity value of the shares or other representative capital rights, as appropriate, according to the financial technique applicable to your assessment.
Expenses will also be deductible directly related to the disposal. "
Article 15.- Replace Article 27 with the following:
" Art. 27.-Single income tax for the activities of the banana sector.-The income from the production, cultivation, export and local sale of bananas as provided for in this article, including other musaceas that occur in Ecuador, be subject to a single income tax in accordance with the following provisions:
1. Local sales of bananas produced by the same taxable person.
In this case the tariff will be up to 2% of the gross sales turnover value, which cannot be calculated at prices below the minimum price of support for the the national agricultural authority. The tariff may be modified by executive order, which may be established by segments and shall enter into force from the following financial year of publication, within a range of between 1,25% and 2%. This rate may be reduced to 1% for the segment of microproducers and actors in the popular and solidarity economy whose annual gross income amounts do not exceed twice the amount of income established for the obligation to carry accounting.
2. Export of bananas not produced by the same taxable person.
In this case the tariff will be up to 2% of the export turnover value, which cannot be calculated at prices below the minimum benchmark price of (i) export by the national agricultural authority. The tariff may be modified by executive order, which may be established by segments and shall enter into force from the following financial year of publication, within a range of between 1,5% and 2%.
3. Banana export produced by the same taxable person.
In this case the tax will be the sum of two components. The first component shall consist of applying the same tariff, as set out in the numeral 1 of this Article, to the result of multiplying the quantity marketed by the minimum price of support laid down by the national agricultural authority. The second component will result from applying the tariff of up to 1,5% to the export turnover value, which cannot be calculated at prices below the minimum benchmark export price established by the national authority of the agriculture. By executive decree, the rate of the second component may be modified and set by segments and shall enter into force from the next financial year of its publication, within a range of between 1,25% and 1,5%.
4. Banana export by means of associations of micro, small and medium producers.
In this case the local sale of each producer to the association will be in accordance with the provisions of the numeral 1 of this article. Exports, for their part, will be subject to a tariff of up to 1.25%. Exports may not be calculated at prices below the minimum benchmark export price established by the national agricultural authority. The tariff may be modified by executive order, which may be established by segments and shall enter into force from the following financial year of publication, within a range of between 0,5% and 1,25%.
Without prejudice to the above, exports to related parties may not be calculated at prices below an annual indexed limit with an indicator which refs the international price change A 2% fee is applied. The Internal Revenue Service, by means of a special reasoned and general resolution, shall establish the indexation methodology and shall indicate the indicator applied and the value obtained for the following year. The initial value of this limit will be 45 cents of the United States of America per kilogram of quality banana 22xu. The equivalences of this price for other qualities of bananas and other mussaceas shall be technically established by the national agricultural authority. This provision shall not apply in operations with related parties established by presumption of proportion of
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transactions, when the taxpayer demonstrates that there is no relationship to the transactions with the resident financial corporations, The tax established in this article will be declared and paid at the time of the year.
The tax established in this article will be declared and paid in the the form, means and time limits laid down in the regulation to this Law. Where the same taxpayer obtains income from more than one of the activities referred to in this article or obtains other income, it shall calculate and declare its income tax for each type of income taxed.
The withholding agents, (a) shall be subject to a withholding tax equivalent to the tariffs referred to in this Article. For the settlement of this single tax, this withholding tax will be a tax credit.
Taxpayers who are exclusively engaged in the activities mentioned in this Article will be exempt from calculating and paying the advance of the tax. income tax.
In cases where taxpayers have additional activities in the production, cultivation and export of bananas, for the purposes of calculating the income tax advance, they shall not consider the assets, assets, revenues, costs and expenses related to the activities identified, in accordance with the
Other sub-sectors of the agricultural, fisheries or aquaculture sector, will be eligible for this regime for their production phase, when the President of the Republic, by decree, so provides, provided that there is a report on the corresponding financial impact of the Director or Director-General of the Internal Revenue Service. The rates will be fixed by executive decree, within the range of between 1.5% and 2%."
Article 16.- Replace Article 28 by the following:
" Art. 28.-Income from construction contracts.-Taxpayers who obtain income from construction contracts will settle the tax on the basis of the results of their accounting in application of the corresponding accounting rules.
Where taxpayers are not obliged to keep accounts or, where they are obliged, the same does not comply with the technical accounting, legal and regulatory provisions, without prejudice to the penalties to be imposed, the tax base is equal to 15% of the total contract.
Fees that Natural persons, by technical direction or administration, constitute income from professional services and are therefore not subject to the rules of this article. "
Article 17.- Replace Article 32 with the following:
" Art. 32.-Insurance, disposals and reinsurance contracted abroad.-The tax to be settled, in cases where the relevant rule entitles you to contract insurance with foreign companies not authorized to operate in the country, shall be retained and paid by the insured person on a taxable amount equal to one quarter of the amount of the premium paid. In the event that the foreign companies identified are resident, constituted or located in a financial paradise or jurisdiction of lower taxation, the withholding tax shall be made on the total amount of the premium paid.
Tax to be settled in cases of transfer or reinsurance contracted with companies that do not have permanent establishment or representation in Ecuador, will be retained and paid by the transferor insurance company, on a taxable basis equivalent to 25%, 50% or 100% of the amount of the premium paid, in accordance with Article 13 (6) of the This Law. No value may be deducted from this amount. '
Article 18.- Realse the following reforms in Article 37:
1. Delete the first paragraph of Article 37 and, instead, insert the following points:
" The taxable income obtained by companies incorporated in Ecuador, as well as by branches of foreign companies domiciled in the the country and the permanent establishments of non-domiciled foreign companies shall apply the 22% tariff on their taxable amount. However, the tax rate shall be 25% where the company has shareholders, members, unit-holders, constituents, beneficiaries or similar residents or established in financial havens or schemes of lower taxation with a share direct or indirect, individual or joint, equal to or greater than 50% of the share capital or of the share capital corresponding to the nature of the company. Where the said participation of financial havens or schemes of lower taxation is less than 50%, the rate of 25% shall apply as to the proportion of the tax base corresponding to that participation, as indicated in the
a)25% tariff shall be applied to the entire taxable base of the company which fails to inform the shareholders, members, unit-holders, constituents, beneficiaries or the like, in accordance with the provisions of the establish the regulation to this Law and the resolutions issued by the Internal Revenue Service; prejudice to other sanctions which are applicable. '
2.-Change in the second paragraph of the second paragraph of Art. 37 of the Law of Internal Tax Regime, which follows:
" In the case of organizations of the popular financial sector and solidarity subject to the control of the Superintendence
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of Popular and Solidarity Economy, of which they would have opted for legal personage and mutual savings and credit associations for the housing, may also obtain such a reduction, provided that they are used for the granting of credits for the productive sector of small and medium producers, under the conditions laid down in the regulation, and carry out the corresponding capital increase. The increase in capital will be improved with the registration in the respective Mercantile Registry until December 31 of the tax year after that in which the profits were generated material for the reinvestment, and in the case of the Savings and credit cooperatives and the like shall be refined in accordance with the relevant rules. '
3. Replace the penultimate paragraph with the following:
" When a company grants its partners, shareholders, members or beneficiaries, money loans, or any of its related non-commercial loans, this transaction shall be will consider as payment of advance dividends and, therefore, the company will have to effect the retention corresponding to the expected rate for companies on the amount of the transaction.
Such a retention will be declared and paid for the month The following shall be made within the time limits laid down in the Regulation and shall constitute tax credit. for the company in its income tax return. "
4. Replace the last paragraph with the following:
" For all the purposes provided for in the tax rules, when reference is made to the corporate income tax rate, please understand those mentioned in the first subparagraph of the present article as appropriate. '
Article 19.- Replace item 39 with the following:
" Art. 39.-Income of non-residents.-The taxable income of non-residents who are not attributable to permanent establishments, provided they do not have a percentage of special retention established in the current tax regulations, sent, paid or credited to the account, directly, by way of compensation, or through the mediation of financial institutions or other intermediaries, shall pay the general fee provided for companies on such taxable income. If the income referred to in this paragraph is received by persons resident, constituted or located in the financial havens or jurisdictions of lower taxation, or are subject to preferential financial arrangements, they shall be subject to a withholding tax. source equivalent to the maximum expected rate for natural persons.
Income or dividend income beneficiaries that are sent, paid or credited to the outside, directly, by way of compensation or through mediation of financial institutions or other intermediaries, shall pay the general fee provided for companies on taxable income, after deduction of the credits
tax to which they are entitled under the preceding article.
The tax referred to in the previous incisos will be retained at the source.
subject to the payment of the general fee provided for companies on taxable income, earnings obtained by a company or natural person not resident in Ecuador, by direct or indirect disposal of shares, shares, other (a) representative capital rights or other rights allowing for exploration; exploitation, concession or similar; of companies domiciled or permanent establishments in Ecuador.
For the purpose of this tax, the company domiciled or permanent establishment in Ecuador whose shares, shares and other rights mentioned in this article were directly or indirectly alienated, will be a substitute for the taxpayer and as such will be responsible for the payment of the tax and the fulfillment of its formal duties. "
Article 20.- Add the following unnumbered item:
" Art. (...) Distribution of dividends or profits.-The percentage of the retention of dividends or profits to be applied to the taxable income shall be established by the Internal Revenue Service by general resolution without exceeding the the difference between the maximum rate of income tax for natural persons and the general rate of income tax for companies. "
Article 21.- Add following item 40A the following unnumbered item:
" Art. (...) Obligation to report and declare on the disposal of shares, shares and other representative rights.-The Internal Revenue Service, by means of a general resolution, shall establish the content, form and time-limits for the companies domiciled or permanent establishments in Ecuador whose shares, shares, other representative capital rights, or other rights allowing the exploration, exploitation, concession or the like, which were taken up, present the information regarding those transactions.
The lack of presentation or presentation with errors of this information will be sanctioned with a fine of 5% of the real value of the transaction.
Those responsible for this income tax will have to liquidate it and pay it in the form, deadlines and conditions
The natural person or company that enacts the shares, units and other rights, as well as the acquirer thereof, shall have the obligation to inform the company domiciled in Ecuador of such shares. transfers, over
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the tax obligations that as a substitute could have the company domiciled in Ecuador. If the company domiciled in Ecuador is not informed, it will have the right to repeat against the acquirer, for the value of the fines and taxes that the transferor would have had to pay, as a substitute. "
Article 22.- In Article 41 (2), do the following reforms:
1.-In the last indent of literal b) remove the phrase: "new investments".
2.-At the end of literal (b), add the following point:
" For the purpose of calculating the advance of the income tax, the contributors included in literal (b) of the numeral 2 of this article, which by application of Generally accepted accounting rules and principles, retained assets, shall not be considered to carry out such calculation, the value of the revaluer made, both for the asset and for the asset.
exclude other affections by application of the accounting rules and principles and financial principles generally accepted in accordance with the Regulation. "
3.-Replace the literal m) with the following:
" m) For the purpose of calculating the income tax advance, the items corresponding to assets, costs and deductible expenses of income and wealth taxes shall be excluded. where appropriate; amounts relating to incremental costs for generating new employment or improving the wage bill, as well as the acquisition of new assets for the improvement of productivity and technological innovation, and in general those new and productive investments and expenditure actually incurred, related to the benefit Tax rates for the payment of income tax which is recognised by the Production Code for new investments in the terms laid down in the Regulation. "
Article 23.- Following Article 48 add the following unnumbered item:
" Art. (...) When the cash benefit is resident in Ecuador; and the company that distributes the dividends or profits fails to report on its corporate composition as provided for in the regulation will be withheld from the income tax on such dividends and profits in accordance with the provisions of this law, without prejudice to the corresponding penalties. "
Article 24.-Add to the end of article 55 the following numeral:
" 17. Electric household kitchens and those operated exclusively by electrical inducement mechanisms, including those with an electric oven, as well as household pots, designed for their
use in kitchens induction and electric water heating systems for domestic use, including electric showers. "
Article 25.- Following article 74 add the following:
" Art. (...)-VAT paid by elderly persons.-Older adults shall be entitled to the refund of VAT paid on the purchase of goods and services of first need for use or personal consumption.
The maximum taxable amount of monthly consumption to which the value to be paid shall be returned shall be up to five unifi basic remuneration of the worker, in force on 1 January of the year in which the acquisition was made. '
Article 26.- Add the term "and ex-customs" in the second indent of the number two number two in item 76 to the "ex factory price" text.
Article 27.- In Article 76 the following reforms:
1. Add the following point below the third:
" When the business structure of the taxable person includes the manufacture, distribution and marketing of goods taxed with this tax, for the calculation of the ex-works price, exclude the marginal utility of the company. "
2. Replace the fourth indent by the following:
"The ex-customs price shall consider the customs value of the goods, the fees and funds collected by the national customs authority and the other items included in the ex-works price."
3. Remove the last paragraph.
Article 28.- In Article 82, make the following reforms:
1.-Within the final box of the table corresponding to Group I of Article 82, after: " Incontinuous foci except for those used as Automotive inputs, 'add the following text:'. Kitchens, cooks, heaters and water heating systems, for domestic use, operating in whole or in part by the combustion of gas. "
2.-Replace the specific tariff rate of the cigarette product in Group V of Article 82 by the following: "0.1310 USD per unit".
Article 29.- Check in Article 116 with the following text:
" Art. 116.-Optional to the Internal Revenue Service so that, by means of regulatory act, the fees are established
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required for the operation of identification mechanisms, marking and tracing of products, as contemplated in compliance with the referred to in Article 87 of this Law. "
CHAPTER III REFORMS TO THE ORGANIC CODE OF PRODUCTION, TRADE AND INVESTMENTS
Article 30.- In Article 24, in the numeral 2 before the end point add a text stating: ", the exemption provided for basic industries and the deduction of 100% additional cost or expense of annual depreciation, in accordance with the law. "
Article 31.- Add the following paragraph to the first paragraph of Article 25:
" It may be established in the investment contracts, the contractual commitments that are necessary for the development of the new investment, the same as those that will be previously approved by the governing body of the material in which the investment is developed. "
Article 32.- Add to Article 26 the following chapter:
" Chapter (...).-Tax Stability Incentive on Investment Contracts
Art. (...) Scope.-Companies making investments for the exploitation of medium and large scale metal mining, in accordance with the conditions laid down in this Chapter, shall be entitled to benefit from the tax stability, for a given time, from the subscription of an investment contract.
Such tax stability may also be granted at the request of a party, in the investment contract of the companies of other companies. sectors, including the basic industries, which make productive investments for the development of country, provided that:
1. The amount of the investment is greater than 100 million dollars;
2. Technical report carried out by the Ministry with competence in the field of investment, on the economic benefits to be reported by this investment for the country;
3. State Attorney General's Report and,
4. Authorization of the President of the Republic for the subscription of a contract in which the requirements, amounts and time limits for making the investment as well as the commitments made by the investor will be regulated.
They will not be able to access this benefi the administrators and operators of ZEDES.
Art. (...) The applicable income tax rates for companies that subscribe to investment contracts that provide them with tax stability, shall be as follows:
a) For companies making investments for the holding of Large and medium scale metal mining and the basic industries that adopt this incentive will be 22%.
b) For companies in other sectors that make investments that contribute to the change of the country's productive matrix, the tariff will be 25%.
Art. (...) Scope of tax stability.-Tax stability, will be limited:
(a) For income tax purposes, stability will be extended over all the rules that allow to determine the tax base and the amount of the tax. pay, in force at the date of subscription of the investment contract. It shall not apply to rules concerning the formal powers, procedures, methods and duties that the tax administration uses and establishes for the control and exercise of its powers.
b) Tax stability may be made extended to the tax on the exit of foreign currency and other national direct taxes, exclusively in respect of the tariffs and exemptions of each tax, in force at the date of subscription of the investment contract.
c) In the case of companies making investments for the exploitation of medium and large scale metal mining, the production is destined for export, they will also be able to obtain tax stability of the value added tax, exclusively in respect of their rates and exemptions.
Art. (...) Vigencia.-The term of validity of the tax stability shall be at most, the term of the subscribed investment contract, in accordance with the provisions of this Code.
Art. (...) Loss of incentive.-When the Technical Secretariat of the Production Sectoral Council is aware of the non-compliance with the requirements, amounts and time limits for the investment, and/or the commitments made by the investor in (a) the investment contract, which has been produced without an individual cause, has been notified to the taxpayer and will grant the taxpayer the term of 15 days for the purposes of the relevant reasons. In the event that these facts are not distorted, the Secretariat notes the loss of the right to tax stability provided for in this chapter.
Once an investment contract is signed that grants the right to benefit from the stability of the tax, the investor may not give up the benefit, which may only be terminated by the legally provided causes. "
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Article 33.- Add to the third paragraph of Article 36 (c), below the phrase " These limits shall not apply to the products obtained in "the following:" economic sectors determined as basic industries and ".
Article 34.-Substitute in Article 43 the final point by a comma and then add the following sentence:" except in the case that the administrator is a public undertaking or a mixed economy. "
Article 35.- Add the following to Title I of Book V, before Article 96, the following text: "Chapter I".
Article 36.- Following Article 102, add the following chapter:
" Chapter II The promotion and promotion of basic industries
Art. (...). Without prejudice to the incentives for productive development and the promotion of exports established in this Code, the State shall promote the basic industries which take advantage of the raw materials from natural resources. renewable and non-renewable, transforming them into products that are then required by other industries for the manufacture of intermediate and fi nals. For the purposes of this Code, the following economic sectors shall be understood as basic industries:
a. Smelting and refining of copper and/or aluminium;
b. Steel casting for flat steel production;
c. Refi nation of hydrocarbons;
d. Petrochemical industry;
e. Cellulose industry; and,
f. Construction and repair of naval vessels. "
CHAPTER IV REFORMS TO THE REFORM LAW FOR
ECUADOR ' S TAX EQUITY
Article 37.- In Article 159, make the following reforms:
1. At the end of the third subparagraph, add the following:
" May benefit from the exemption specified in this paragraph, only those credits intended for the segments to be established for the purpose, and which meet the deadlines, conditions and other requirements determined by the Tax Policy Committee. "
2.-In the sixth paragraph, replace the phrase "at least one year in the country" with "in the country, at least the deadline indicated
by the Tax Policy Committee, which may not be less than one year".
3. Replace the seventh indent by the following:
" Payments made abroad, from financial returns, capital gains and capital from investments made abroad, are also exonerated in securities value issued by legal persons domiciled in Ecuador who have entered the country and remained at least the period indicated by the Tax Policy Committee, which may not be less than one year, for the purposes of housing, microcredit or the investments provided for in the Production Code. It does not apply this exemption when the payment is made directly or indirectly to natural persons or companies resident or domiciled in Ecuador, in financial havens or preferential regimes or between related parties.
of the exemptions provided for in the preceding two subparagraphs, only those investments which are in the fields to be established for the purpose, and which meet the deadlines, conditions and other requirements laid down by the Committee of Tax Policy. "
4.-The following point is added to the end of Article 159:
" The consumption of electric and induction stoves, their parts and parts; the pots designed for use are exempt from the payment of the ISD. in induction cookers; as well as electric water heating systems for domestic use, including electric showers. "
Article 38.- In Article 160, replace the phrase "of the accreditation or deposit, or the amount of the check, transfer or rotation abroad." by the phrase " accreditation, deposit, check, transfer, spin and in general of any another mechanism for extinguishing obligations when these operations are carried out outward. "
Article 39.-Add the following literal to the end of the article 180:
" (j) The premises used for production activities of bananas or other sectors or subsectors that are used for the regime of the tax on the Single income in accordance with Article 27 of the Organic Law of Internal Tax Regime. "
Article 40.- Replace the item number 2 in item 183 with the following:
" 2. The holding of investments abroad. "
CHAPTER V REFORMS TO THE LAW FOR REFORM
OF PUBLIC FINANCES
Article 41.-In the Seventh General Disposition, do the following reforms:
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1.-In the literal d) Do the following reforms:
a) In numeral ii) remove "and,"
b) In numeral iii) remove "." and put "; and,"
c) Add the following number:
"iv) Transport, store or maintain products, with or without commercial purposes, that do not have security components established in the current tax regulations."
2.-In the literal e) add the phrase "of the seized goods provisionally", the phrase " or if it is not demonstrated that the norms that force the placement of safety components in the products have been met, according to corresponds. '
CHAPTER VI REFORMS TO THE TAX CREDIT LAW
Article 42.- In Article 7 remove the fourth indent.
CHAPTER VII REFORMS TO THE MINING LAW
Article 43.- Remove in the article 30, the sentence: "prior to the payment of a registration right corresponding to one percent of the value of the transaction."
Article 44.- In the article innumbered following Article 127 highlight the following modifications:
1. At the end of the first indent, remove the following sentence "and pay the right of registration corresponding to one percent (1%) of the value of the transaction.", and instead add a final point.
2. In the second indent, remove the phrase "and the payment of the respective right".
Article 45.- Deroguese General Disposition Seventh, incorporated by the Organic Reform Law to the Law of Mining, to the Reform Law for Equity Tax in Ecuador and the Organic Law of Internal Tax Regime, published in the Register Ofi cial Supplement 37 of 16 July 2013.
Article 46.- Deroguese the Fourth Transitional Provision, incorporated by the Organic Reform Law to the Law of Mining, to the Reform Law for Tax Equity in Ecuador and to the Organic Law of Internal Tax Regime, published in the Register Ofi cial Supplement 37 of 16 July 2013.
CHAPTER VIII REFORMS TO THE LAW OF THE ELDERLY
Article 47.-Replace the first paragraph of Article 14 with the following:
" Everyone over sixty-five years of age and with estimated monthly income in a maximum of five single-year basic remuneration, or a property which does not exceed five hundred single-year basic remuneration, shall be exempt from the payment of financial and municipal taxes. As for the taxes administered by the Internal Revenue Service, it will be in accordance with the law. "
CHAPTER IX REFORMS TO ORGANIC LAW
DISABILITIES
Article 48.-Replace Article 78 with the following:
" Art. 78.-Value added tax.-Persons with disabilities have the right to the value added tax paid in the purchase of goods and services of first need for use or personal consumption, be reintegrated through the cheque, bank transfer or other means of payment, without interest, in a time not greater than ninety (90) days of submission of your application in accordance with the respective regulations.
If the term above was expired, no The tax on the added value claimed, the respective legal interests will be recognized.
An annual maximum amount is set to return from tax to the paid aggregate value of up to twelve percent (12%) of the triple of the basic fraction taxed at zero rate of income tax payment; however, the value to return for each monthly period may not exceed one twelfth of the maximum annual amount, previously stated.
The VAT paid on local acquisitions, for personal and exclusive use of any of the goods set out in the numbers from 1 to 8 of Article 74 of this Law will have no limit as to the amount of your refund.
The benefit established in this Article, which may not be extended to more than one financial beneficiary, shall also be applicable to substitutes. "
CHAPTER X FOREST LAW REFORMS
AND CONSERVATION OF NATURAL AREAS AND WILDLIFE
Article 49.- Following Article 56, add the following:
" Art. (...).-Economic incentive for afforestation and afforestation with commercial purposes.-The economic incentive for afforestation and afforestation with commercial purposes, which constitutes a direct economic transfer of a non-commercial character. repayable by the Ecuadorian State through the ministry of agricultural policy, to natural and legal persons,
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communes, associations and productive cooperatives, and the organizations that make up the popular and solidarity economy, to disburse or reimburse, in accordance with the regulations that are issued for the purpose, a part of the costs in which they invest for the establishment and maintenance of the forest plantation.
Under no concept will the forest incentive be delivered when they are found in:
a) Fragile Ecosystems;
b) Protected areas;
c) Protection zones permanent; and,
d) Areas that receive other incentives.
The ministry of agricultural policy, will issue the regulations to determine the requirements, procedures and conditions regarding the granting and administration of the incentive, selection of beneficiaries, among others to be established. "
CHAPTER XI TOURISM LAW REFORMS
Article 50.- In the Tourism Act, replace Article 39 by the following:
" Art. 39.-The ministry of tourism policy will determine and regulate through the Ministerial Agreement the following resources:
a) Rates and contributions that are created to encourage tourism;
b) The contribution of one per thousand on the value of the financial assets to be paid annually by all tourism service providers as provided for in the Regulation to this Law;
c) The values for the granting of the tourism register; and,
d) The rate for the issuance of each airfare to travel from Ecuador to any place in the foreign. "
Article 51.- In the Tourism Act, remove Articles 40 and 41.
GENERAL LAYOUT
GENERAL DISPOSITION FIRST: Those taxpayers who do not pay the producer at least the minimum price of If the national agricultural authority is to provide any discount or apply for a refund not justified on the invoiced value, they shall be excluded from the scheme provided for in Article 27 of the Law on the Internal Taxation for the period in which the default occurred.
TRANSIENT
TRANSIENT DISPOSITION FIRST.- Until the issuing of the respective Executive Decree referred to in Article 27 of the Internal Tax Regime Act, the following tariffs shall apply:
a) Sale local banana produced by the same taxable person in boxes per week.
Number of boxes per week
Rate
From 1 to 500 1%
From 501 to 1,000 1.25%
From 1001 to 3,000 1.5%
From 3.001 onwards 2%
(b) The tariff for the export of bananas not produced by the same taxable person shall be 1,75%.
c) Rate of the second component to banana exports produced by the same taxable person in boxes per week:
Number of boxes per week
Rate
Up to 50,000 1.25%
From 50,001 onwards 1.5%
d) For exports of micro-and small-scale producers, whose members individually produce up to 1,000 boxes per week, the tariff will be 0.5%. In other cases of exports by micro, small and medium producers associations, the tariff will be 1%.
In the event that the taxable person is part of an economic group, the application of these tariffs shall be considered as the totality of boxes sold or produced by the entire economic group.
TRANSITIONAL PROVISION SECOND: Companies formed prior to the application of the Organic Code of Production, Trade and Investments, which undertake the acquisition of new and productive financial assets, shall be entitled to the deduction of one hundred percent (100%) of the Annual depreciation expense or expense generating such investments for five (5) years counted Since the beginning of your productive use occurs.
To apply this benefit:
a. The investment proceeds from which financial assets are acquired, new and productive, must be made within one of the priority economic sectors for the State, defended by the Code of Production, Trade and Investments.
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b. The mere change of ownership of productive assets, which are already in operation or operation, does not involve new investment.
c. The benefit provided for in this provision shall not apply where new and productive financial assets have been acquired in order to be entitled to other benefits already provided for in the tax law, such as the reduction of the tariff by reinvestment of profits or additional deductions for depreciation costs or expenses.
The provisions of this Transitional Provision shall also apply to companies incorporated as of 30 December 2010 within the Quito and Guayaquil urban jurisdictions.
The term of validity of this Transitional Provision shall be ten (10) years from the year following that of its publication in the Official Register. '
TRANSITIONAL PROVISION THIRD.- The duration of the program of incentives for afforestation and reforestation with commercial purposes will be thirty (30) years from the time of the present reform with the financial encourage at least the establishment of thirty thousand (30,000) hectares per year.
TRANSITIONAL PROVISION FOURTH.- Liquidese the Joint Fund of Tourism Promotion, constituted on July 29, 2002, before the Notary 30 Second from the Canton Quito, administered by the Fiduciaria del Pacifi co S.A. Fidupacifi co. The assets that make up this autonomous patrimony and consist of the financial accountability that the Fiduciary will issue, will be transferred to the National Treasury's Single Account as well as the resources that are in the Central Bank's account. Ecuador open for this Fund.
TRANSITIONAL PROVISION FIFTH.- Associations, communes and cooperatives, except entities of the popular and solidary financial sector, which comply with the requirements laid down in the regulation for the application of this law, will have a system of compliance with formal and material duties
FINAL DISPOSITION.
THE PROVISIONS OF THIS LAW SHALL ENTER INTO FORCE FROM THE DAY FOLLOWING THAT OF THEIR PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN UNION. Official Registration.
Given and subscribed to in the Metropolitan District of Quito, at twenty-two days of December 2014.
f.) GABRIELA RIVADENEIRA BURBANO, President.
f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
GUAYAQUIL, TO TWENTY-THIRD OF DECEMBER TWO THOUSAND FOURTEEN.
SANCTION AND ENACT.
f.) RAFAEL CORREA DELGADO, CONSTITUTIONAL PRESIDENT OF THE REPUBLIC.
The copy of the original is fi.-Lo Certifi co.-Guayaquil, December 23, 2014.
f.) Dr. Alexis Mera Giler, SECRETARY GENERAL OF THE PRESIDENCY OF THE REPUBLIC.
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