Benefits for Seniors in Ecuador


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To receive the following benefits, a person over 65 must carry a cedula or passport justifying legal status in the country. You do not legally need to be a resident to enjoy these benefits, however some organizations will demand a cedula because that is what they are used to, and battling with them over the law can be more exhausting than fruitful. These exceptions are noted below:

IVA – (VAT- Value Added Tax)

This 12% tax is paid by the final consumer of goods and/or services. You may have noticed it on the receipts you receive in restaurants, stores, etc. If you are renting a home you do not need to pay IVA. Youdo need to pay IVA if you rent out a space for commercial use.

Individuals over 65 are eligible to apply for reimbursement of all IVA paid month by month. The reimbursement must be requested at the SRI office with these documents:

a) Proof of a bank account to be credited

b) Application for Reimbursement of IVA

c) Original “facturas” or receipts with your name on them

d) Copy of the Certificate of Visa Registration (Certificado de Empadronamiento)

The application must be submitted monthly, and the reimbursement of the IVA will be credited to the bank account provided within a period of no more than 90 days. You can only be reimbursed for monthly expenditure on goods and services up to $1,590. If you exceed this amount of expenditure you can still be reimbursed up to the limit.

Art. 181–

Regulatory Document for the Application of Internal Tax Law

Publication: Official Register Supplement 209

Date of Publication: 08-Jun-2010, Most Recent Reform: 23-Jan-2013

Art. 2 –

National Tax Benefits for Seniors, Executive Order 2823

Publication: Official Register 623

Date of Publication: 22-Jul-2002

INCOME TAX

In relation to payment of income tax in Ecuador, there is something called “Impuesto a la Fracción Excedente” which is a tax paid when an individual’s net yearly income exceeds a certain limit. For people over 65, the income limit is doubled. The standard limit for 2013 is $10,180. Meaning that if a person over 65 has a yearly income under $20,360 he or she will not pay income taxes.

Art. 49 –

Regulatory Document for the Application of Internal Tax Law

Publication: Official Register Supplement 209

Date of Publication: 08-Jun-2010, Most Recent Reform: 23-Jan-2013

Art. 2 –

National Tax Benefits for Seniors, Executive Order 2823

Publication: Official Register 623

Date of Publication: 22-Jul-2002

MUNICIPAL TAXES