By: Abg. Miguel Ángel Saltos, Mgs.
Deduction for Acquisition of Environmental Technologies
An additional 100% deduction is incorporated in the depreciation and amortization of machinery, equipment and technologies focused on renewable energies, cleaner production, renewable energy generation (solar, wind, etc.), reduction of environmental impact and gas emissions greenhouse effect, with the condition that these are not required by environmental authorities for environmental licenses.
The deduction of expenses in the construction of electrical distribution networks and infrastructure for isolated commercial and/or industrial clients is introduced, subject to the approval of electrical distribution companies.
Modification in Deductions for Personal Expenses
Expansion of deductible personal expenses including clothing, education, food, health (including pet medical expenses), housing, national tourism, alimony, art and culture, all interest on unsecured and mortgage loans , and salaries to workers affiliated with the IESS , excluding VAT and ICE on these expenses.
Incentives for Electric Vehicles and Environmental Equipment
It will have a 0% VAT rate and electric vehicles will be exempt from ICE. Electric vehicles are defined as those powered solely by electric energy, with battery charging exclusively from this source and zero direct polluting emissions, excluding vehicles with internal combustion self-generation systems.
Equipment and accessories for solar photovoltaic generation and wastewater treatment plants will have a 0% VAT rate as deductible goods.
Adjustment in Definition of Gross Income for RIMPE
Modifies the definition of gross income for the RIMPE – Negocios Populares regime, including discounts, refunds, salaries to employees affiliated with the IESS, and establishes the use of the progressive income tax table on these incomes.
Remission of Interest, Fines and Tax Surcharges
Establishes remission of 100% of interest, fines and surcharges for tax obligations paid in whole or in part until December 31, 2023, if they are made until July 31, 2024. Excludes from this remission the President of the Republic, Assembly Members, and their relatives up to the fourth degree of consanguinity and second degree of affinity, as well as the income tax for fiscal year 2023.
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Contact information:
Abg. Miguel Ángel Saltos | Email: miguel.saltos@lince-saltos.com | Telephone: (+593 4) 2630313
