Entrepreneurship and Leadership

  Value Added Tax VAT (IVA in Spanish) It is a tax that is charged on the value of local transfers or imports of personal property, in all its stages of commercialization and on the value of the services rendered.  Who has to pay? -         All persons and companies that provide services and / or carry out transfers or imports of goods must pay Value Added Tax (VAT). -         Those who have paid VAT may use it as a tax credit in the cases contemplated in the Internal Tax Regime Law. -         Additionally, the persons and companies designated as withholding agents through current tax regulations, will withhold VAT in cases that warrant. -         This tax is declared and paid monthly when transactions are taxed and / or when VAT is withheld, and semi-annually when transactions are taxed at 0%. What should be paid on? -    ...

   Unified Basic Salary It is the minimum income that a worker receives as a right to the work performed during a month; It should be noted that this minimum income is adjusted by the Ministry of Labor on an annual basis. For example, for 2016 a basic salary equivalent to US $ 366 has been established. For the year 2022, the basic salary is US $425. Currently, the basic salary is 450 USD Living Salary It is the product of the result of dividing the average value of the basic family basket registered in the year being calculated for the number of family earners established by the National Institute of Statistics and Censuses (INEC). If a worker has received monthly, as total remuneration, which includes basic salary and other social benefits, a value lower than the living wage, the company is obliged to cover that difference with its own funds. Overtime An ordinary worker is obliged to work 8 hours a day, 5 days a week. Although there is the figure of overtime when their collab...

According to the IRS, the RIMPE eliminates the Microenterprise regime in force until 2021. This regime, designed for microenterprises, levied a 2% rate on the gross income of microentrepreneurs, regardless of whether they have reported loss.    What is it used for? The purpose of this Resolution is to establish the conditions for the application of the Simplified Regime for Entrepreneurs and Popular Companies (RIMPE), provided for in the Organic Law of Economic Development and Fiscal Sustainability after the COVID19 Pandemic.    RIMPE – Entrepreneurs   Natural and legal persons with annual gross income of up to USD 300,000 (as of December 31 of the previous year).   RIMPE - Popular businesses   Natural persons with annual gross income of up to USD 20,000 (as of December 31 of the previous year).    The transfer to RIMPE, which is temporary and valid for three years, has been automatic, which has raised many questions. According to the Interna...

https://www.youtube.com/watch?v=E7aNCkKF-PQ&ab_channel=TheRichDadChannel  Legal and Social Responsibility of the Entrepreneur STR Single Taxpayer Registration (RUC) At the moment of meeting the requirements established by the Ecuadorian legislation, the entrepreneur must obtain a Single Taxpayer Registration (STR) (in Spanish RUC – Registro Único de Contribuyente) as a means of formal recognition of your business. It is like an identification to carry out productive activities, acts to comply the tributary obligations and it is the means used by the tax control authority.   According to the Internal Revenue Service (IRS) (in Spanish SRI – Servicio de Rentas Internas), the STR it is a number identification for all the people and societies that make an economic activity in Ecuador. It contains 13 numbers according to the type of taxpayer its composition varies, the STR is usually the citizenship identification number followed by 001.   What is it used for? The Ecuadoria...