Discounts for Seniors in Ecuador
Ecuador is a country that looks to protect vulnerable groups such as children, disabled people, and seniors. These groups have a special law to protect their rights which specifies the role of the public and private sector to guarantee the Senior Law and its regulations are followed.
First, we are going to define according to law who is a senior: “Natural persons national or foreigners who are 65 years old and are legally settled in the country are beneficiaries of this law. To access to the exemptions and discounts in public and private services stated in this law, seniors will justify their condition only by presenting their identity document or citizenship card (cédula) or with the legal document that certifies foreigners”.
The Senior Law (Ley del Anciano), published in the Official Registry No. 376 on October 13, 2006 and modified the last time on April 29, 2016; lists the following benefits:
Exemption of the payment of fiscal taxes and municipal taxes as long as his/her estimated monthly incomes are a maximum of five minimum wages or if he/she has a wealth which does not exceed five hundred minimum wages. If monthly incomes or wealth exceed the determined values in the first paragraph, only the difference or excess taxes will be paid (Article 14 of Senior Law).
Exemption of 50% of air, land, and maritime transport fares and of entry tickets to public, cultural, sports, artistic, and entertainment shows. To obtain the discount it is sufficient to present cédula or retired or pensioner ID card from the Ecuadorian Social Security Administration (Article 14 of Senior Law).
Special discount in taxes on vehicles. - a discount of 8,000 dollars is added to the value of the vehicle for the settlement of taxes. For example, for a vehicle that costs $15,000, instead of paying the taxes on that price, a senior citizen receives a discount of $8,000, and the taxes are calculated based on the remaining value of $7,000. (Tax Reform Law – Tax of Vehicles article 9).
Right to claim VAT refund for purchases of essentials goods and services for personal consumption up to a maximum value of two minimum wages. To this end, the person concerned should submit to the Internal Revenue Service the corresponding refund application with the corresponding original bills where the person has to be identified with his/her full names and his/her cédula number. These bills have to meet all other requirements provided by the respective regulation (Article 74 of Organic Tax Law).
Right to obtain the exemption of exit tax from the country as long as his/her estimated monthly incomes are a maximum of five minimum wages or if he/she has a wealth which does not exceed five hundred minimum wages, for which he/she should request a certificate from the Internal Revenue Service which will be valid for a year. This certificate should be submitted at the moment of verifying the incurrence of the tax (Article 6 of the Law of Tax Benefits in favor of Seniors).
In the case that any public or private institution does not comply with the Senior Law, they will be punished with:
Temporarily or permanently suspension of the operation license of the private companies; and,
Removal of the infringing public official.
In case of any complaint, it can be filed with the Public Prosecutor for Seniors, which is an independent agency of the Ministry of Economic and Social Inclusion (MIES) to protect the economic and social rights, including legal complaints, of seniors.