How to save on your income tax in Ecuador

This week I filed my income tax return in Ecuador due every March (impuesto a la renta).

My accountant charged $30 and was done in 20 minutes.

It was so quick because she already handled my monthly sales tax declarations and already had the paperwork on hand.

Based on the monthly tax declarations for all of 2016 she quickly pumped out the annual return and submitted it.

Every independent contractor is entitled to a couple of deductions they can take in order to save on their taxes, such as mileage and equipment expenses. Self-employed people can also deduct their health insurance premiums, state and federal taxes and home office expenses. The self-employed should consult with an accountant to ensure they claim every deduction possible. You can check here how to pay taxes as independent contractor.

When you file if you have employees insist that your accountant submits the form declaring how much you pay to employees.  That will lower your tax burden greatly.

If you show less than $11k in profits for the year you pay ZERO income tax in Ecuador.  And it’s a sliding scale on up to the highest tax bracket for folks who make more than $115k profit who must pay 35% tax.

Hasta pronto, if you liked this you’d love my Insider’s newsletter on living and investing in Ecuador,

Fill in below to sign up now (you can unsubscribe at any time):

Published by

Journeyman Jack Ecuador

Proudly serving Ecuador Expats since 2008, My Services, web links, contact info tel. #'s - US, CAN & EC. are all below: Thank You, Jack Abercrombie, Cumbaya, Quito- ECUADOR S.A. [email protected] [email protected] #StrategicRelocationEcuador "May your strategy be as dark as night and as swift as a boulder rolling down a mountain." ~ Sun Tzu "I'd rather prep 10 years too early than 10 minutes too late." Strategic Relocation Ecuador: http://JourneymanJack.com/ Ecuador Real Estate: http://EcuadorRealEstate.org Call Toll free from U.S. & Canada: Mnts: 770-828-7913, & Coast: 770-988-4492, EC. Off: 02-380-4088, Ec. Cel Claro: 098-828-8953, WhatsApp, Zello, Telegram, Viber, Signal, WIRE, Element, Sessions: +593-98-828-8953, For Virtual Real Estate Tours, PreTrip Planning Video Conference via Zoom, jitsi, "skype" user name: "Jack.Abercrombie"- https://join.skype.com/invite/B4plcVLSCGWk Someone once said that Ecuador is a country that is: •EASY to love- •HARD to understand- •Impossible to forget- 'All the Very Best on Your Endeavors in Ecuador-