Organic Law Of Redistribution Of Revenues For Social Spending

Original Language Title: Ley Orgánica de Redistribución de los Ingresos para el Gasto Social

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Read the untranslated law here: http://www.asambleanacional.gob.ec/es/system/files/ley_de_redistribucion_del_gasto_social_tramite_no.pdf



CONSIDERING: That, in paragraph 1 of article 3 of the Constitution sets that primordial State duty are to guarantee, without discrimination, the effective enjoyment of the rights set out therein and in international instruments, in particular the education, health, food, social security, and water for its inhabitants; plan the development national and eradicate the poverty, promote the development sustainable; and, the equitable redistribution of resources and wealth to gain access to the good life;

That, the paragraph 2 of article 66 of the Constitution of the Republic recognizes and guarantees people the right to a dignified life ensuring health, food and nutrition, drinking water, housing, sanitation, education, work, employment, rest and leisure, physical culture, dress, social security and other necessary social services;

That article 286 of the Constitution of the Republic establishes that public finances will lead sustainable, responsible and transparent to ensuring economic stability; and, article 287. ibid points out that for all funded obligations with public resources must be with the appropriate funding source;

That, article 300 of the Constitution of the Republic establishes the application of the principle of progressivity in the tax system design;

That, the paragraph 15 of article 83 of the Constitution of the Republic, establishes as a fundamental duty of the Ecuadorian and Ecuadorians, cooperate with the Government and the community in social security, and paying the taxes established by law;

That, under the rules set out, in order that through the application of taxes attainable funding of the bond of human development, from the Republic the Ecuador constitutional President in by trade not. T. 6579-SNJ-12-1236, of October 25, 2012, in exercise of the powers conferred by article 135 of the Constitution of the Republic of Ecuador , forwards to the Assembly national the project of "law organic of redistribution of the income for the expenditure Social"; (and, in use of their powers constitutional and legal, issued the following: law organic of redistribution of them income for the expenditure SOCIAL article 1.-issue them following reforms to the law of regime tax internal: to) in the second subsection of the article 37 replace is the phrase: "institutions financial private, cooperative of saving and credit and similar," by: "them organizations of the sector financial popular and solidarity subject to the control of the Superintendence of economy Popular and solidarity and them associations" (mutual benefit savings and housing loans,"b) added after the letter m of the number 2 of article 41, the following literal:"n) private financial institutions and companies issuing and administering credit card, subject to the control of the Superintendence of banking and insurance, except mutual savings and credit for housing associations will pay 3% of the taxable income of the previous year; This percentage may be reduced in duly justified cases for economic or social reasons by Executive Decree, to 1% of taxable income, in general or by segments, following a report of the Ministry in charge of economic policy and the internal revenue service."

(c) replaced in (b) of article 41 paragraph that says: "the institutions subject to the control of the Superintendence of banking and insurance and credit unions and the like, not considered in the calculation of the advance monetary assets.", by the following text: "organizations of the popular and solidary financial sector subject to the control of the Superintendence of Popular and solidary economy and mutual savings and credit for housing associations ", not considered in the calculation of the advance them active monetary."

Supplement - Registro Oficial Nº 847 - Monday, December 10, 2012 - 3 d) item 12 of article 56 removed the following sentence: "financial and".

(e) in article 106 replaced the expression: "30 to $1,500 from the United States of America", by: "1-6 pay basic unified worker in general".

(f) at the end of article 106, removed the end point (".") and add the following text: "and will be delivered directly, without requiring prior processing or intermediation, whatever this is, before any authority.

Financial institutions subject to the control of the Superintendence of banking and insurance and the financial sector people and solidarity organizations, subject to the control of the Superintendence of Popular and solidary economy that do not comply fully and promptly with the delivery of the information required by any route, by the internal revenue service, will be penalized with a fine of 100 to 250 unified basic remuneration of the worker in general for each requirement. The tax administration shall be granted at least 10 business days for delivery of the requested information.

Misuse, abuse or unauthorized use of the information delivered to the internal revenue service by its officials shall be punished in accordance with the regulations in force.

The information bank subject to stealth or subject to book, obtained by the service of incomes internal low this procedure, will have the character of reserved of conformity with it established in the subsection end of the article 101 of the law of regime tax internal only and of way exclusive can be used in the exercise of its powers legal. The internal revenue service will adopt internal organisation measures necessary to guarantee your booking and control its proper use. Misuse of the information shall be subject to civil, criminal or administrative, as the case may be. "."

(Article 2.-issue them following reforms to the law reform for the equity tax in the Ecuador: to) then of the article innumerado added below of the article 162 Add is the following article innumerado: "article (...)." -Payments for tax remittance, likely to be considered as tax credit for payment of the tax income, in accordance with the previous article, which have not been used as such with respect to the fiscal year in which they were generated or with respect to the four subsequent tax years, may be returned by the internal revenue service , on request of the taxable person.

This application is receptará once the taxpayer filed the corresponding tax return to the income of the fiscal year in which such payments from ISD were fired. He service of incomes internal, of be from, will have the return of the tax paid, ordering the emission of a note of credit, which will be freely negotiable in any time, and will be used to pay the tax to the income within the term planned in the subsection previous.

This return will not proceed with respect to the values of ISD considered as deductible expenses, in the respective tax return income. "."

(b) replaced article 183 by the following: "article 183.-made generator-it is considered fact generator this tax: 1. tenure to any degree of available funds domiciled entities outside the national territory, either directly or through subsidiaries affiliates or offices abroad of the taxable person;" and, 2. Investments outside the entities regulated by the National Council of values."

(c) replaced article 187 with the following text: ' article 187-rate-the rate of this tax is 0.25% per month on the applicable tax base for the funds available in foreign entities and investment issued by issuers domiciled outside the national territory. "

When the capture of funds or investments that are maintained or made through subsidiaries in tax havens or preferential tax regimes or through affiliates or offices in the exterior of the taxable person, the applicable rate will be 0.35% per month on the tax base; This rate may be reduced in duly justified cases for economic or social reasons by Executive Decree, to 0.1%, in a general manner or by segment, previous reports of the Ministry in charge of economic policy, and the internal revenue service."

Article 3.-issued following reforms to the General Act on institutions of the financial system: to) at the end of the third paragraph of article 88, removed the end point ("."), and add the following text: ", except if such operations were required by the revenue service internal, where the mentioned institutions shall be required to provide a personalized and parcializada information on deposits and other funds of any kind in their establishments."

(b) make the following changes to article 91: 4 - supplement - official record No. 847 - Monday, December 10, 2012 1. In (c), then the phrase "of the Ecuador Central Bank" replaced the comma (,) by the letter 'y'; and deleted the phrase "and the tax administration"; and, 2. Then the letter g) add the following letter h): "h) any information requested by the internal revenue, directly, without formality or any brokerage service, and under the conditions and the way that this entity has it, for purposes of management, control, determination and tax revenue.".


((c) add following (f) of article 175, the next letter g): "g) establish the maximum amount of the remuneration of the administrators and legal representatives of the institutions under their control."

Article 4.-below of the subsection end of the article 95 of the law organic of the economy Popular and solidarity and of the Sector financial Popular and solidarity, add is the following text: "them organizations of the sector financial popular and solidarity will have the obligation of deliver to the service of incomes internal, of way direct, without pending or intermediation any, and in them conditions and form that this entity it available" , any information that is required for its management, control, determination and tax collection purposes. "."

Article 5.-in the first paragraph of article 20 of the law of creation of the internal revenue then the phrase service: "Entities of the public sector, corporations, private organizations," added: ", financial institutions and the financial sector people and solidarity organizations"; and, of the second subparagraph, delete: "through the Superintendent of banks, banks and other entities subject to its control,".

PROVISIONS General first.-financial institutions domiciled in the Ecuador, within the scope of this reform, in transactions and services carried out in the country, les is forbidden to move the tax charges determined in this law, customers and users of the same.

The Superintendency of banks and insurance and service of internal revenue, within their responsibilities, will monitor, monitor, control and will sanctioned way exemplary breach of this provision.

SECOND.-the governing Ministry of economic and social inclusion will continue, within its territorial strategy, to strengthen its action in the areas of border and Amazon region to procure that the beneficiaries of the bond of human development that are designated in accordance with the corresponding legislation, prioritise to older adults and persons with disabilities who are in this situation of vulnerability among.

The function Executive will maintain the authority of regulation, administration, operation, monitoring and payment of the mentioned bonus.

TRANSITIONAL provisions first.-the Ministry of economic and Social, within 90 days of Inclusion of published this law in the Official Gazette, shall inform the permanent specialized Commission of the economic and tax regime and its regulation and Control of the National Assembly, with respect to the implementation of the promotion measures referred to in article 137 of the organic law of Popular and solidary economy and Popular financial sector and United.

SECOND.-the internal revenue, within 90 days of service of published this law in the Official Gazette, shall inform the permanent specialized Commission economic and tax regime and its regulation and Control of the National Assembly, with respect to the tax burden of a hundred of the country's largest economic groups.

REPEALING provision: First: repeal of the third paragraph of article 33 of the law on tax.

FINAL disposition: Single.-this law shall enter into force following its publication in the official register.

Given and signed at the headquarters of the National Assembly, located in the Metropolitan District of Quito, Pichincha province, the four days of the month of December of two thousand twelve. ((f) FERNANDO CORDERO CUEVA f President) DR. ANDRÉS SEGOVIA S. Secretario General.

I certify that the National Assembly discussed and approved the law of redistribution of the income for the spending SOCIAL, in first reading on 8 November of 2012, in second debate on November 20, 2012, and ruled on the partial objection from the President of the Republic on 4 December 2012.

(Quito, 5 of December of 2012 f.) DR. ANDRES SEGOVIA S., Secretary General.