Tax Recovery in Ecuador
Dear reader
With the purpose of improving the liquidity of organizations by recovering taxes for overpayments or improper payments, we offer our advice through the analysis and evaluation of the best alternatives to achieve a successful return process through the participation of a team of professionals specialized in the financial, tax and legal areas, fully reviewing the source information required by the tax administration to determine the most convenient viable alternatives in the claim process.
We have supported companies in the following tax processes:
Value Added Tax (VAT):
The legislation contemplates a term of five (5) years to grant the refund of this tax to the following taxpayers:
– VAT withholdings at source: Corresponds to values withheld by customers and that could not be subject to compensation.
– Exporters: Those who pay VAT on local acquisitions or imports of goods, services or fixed assets used in the manufacture and marketing of exported goods are entitled to a refund of this tax.
– Receptive Tourism Operators: Those who invoice receptive tourism packages to natural persons or companies not resident in Ecuador, are entitled to a refund of the VAT paid on local acquisitions or imports of goods, services or fixed assets.
Income tax:
– Tax credit for withholdings at the source: Taxpayers have the right to claim a refund of the tax credit for withholdings at the source that have not been offset from their annual income tax. The term to file the claim is three (3) years from the due date of filing the income tax return.
Foreign Currency Outflow Tax:
The balance of the foreign currency outflow tax credit paid on the import of raw materials, supplies and capital goods that are included in the tariff items defined by the Tax Policy Committee that are used in production processes in the terms defined in the Organic Code of Production, Commerce and Investments. The term to submit the application is five (5) years from the due date of the filing of the income tax return.
Claims for income tax withholdings paid by foreign suppliers:
Income tax withholdings made to foreign suppliers domiciled in countries with which Ecuador has entered into agreements to avoid double taxation are subject to recovery. These withholdings apply to annual transactions greater than fifty basic fractions taxed at a zero rate of income tax for natural persons.
Do you have tax values that you can recover from the SRI? If so, write to us at kcardenas@bp-one.com to support you in your recovery.
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