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,
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Journeyman Jack Ecuador
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