FOREIGN TAX RESPONSIBILITIES

Eliana Alvarez Mena

ALVAREZ ACCOUNTANT DESPACHO CONTABLE Y FINANCIERO

Every foreigner with an economic activity in Ecuador has the same tax responsibilities as a national person, since the State takes their income as an Ecuadorian source, these can be work, professional, commercial, industrial, agricultural, mining, service and Others of an economic nature carried out in Ecuadorian territory, regardless of the domicile or nationality of the taxpayer, are subject to taxes, and their tax obligations vary due to several factors, such as the regime in which the SRI categorizes them, according to the amount of return. , among others, as well as must comply with other obligations with government institutions such as the IESS, the Super de Compañías, and more.

CHALLENGES FOR BUSINESS OWNERS

Currently every business needs a level of skill with foreign languages to hold meetings, agree on services or close sales. And even more so if your economic activity is in a country that does not speak your native language.

This has become a real challenge for foreigners living in Ecuador, and can mention:

• When trying to speak in Spanish on important and technical topics such as accounting and finance, they do not achieve full understanding, then they lose direction, they could make wrong decisions and minimize their sense of entrepreneurship.

• Financial health is vital to the effective performance of any business and if your accountant does not connect with you in your own language, this is affected and could lead to financial mismanagement and financial failure.

In accounting outsourcing, the confidence of interacting in the same language creates solutions in search of efficiency, reduction of costs and taxes that drive results, business objectives and return on investment.

DICTIONARY

Income: Income of money that occurs as a consequence of our main economic activity, it may come from the sale of a good or service.

Expenses: Any costs incurred as a result of a company's attempted or successful production of income. Expenses may include cash, cash equivalents, and depreciation.

Costs: Money invested in the direct production of a product or service. It takes into account 3 elements, raw materials, labor and general production costs.

Taxes: Mandatory payments of money that the State demands from individuals and companies, according to economic capacity, without consideration, that is, without any direct benefit in exchange.

Profitability: The profitability of a company is the ability of an organization to make profits. This index measures the relationship of utility or profit obtained and the investment made to achieve it.

Investment: The process of purchasing assets that increase in value over time and provide returns in the form of income payments or capital gains.

Profit: This profit results from a company's final financial statements and the costs incurred along the way.

Celular: 0978762962

Direccion: Edificio Manta Business Center. Av. Malecón y Calle M3

Manta - Ecuador

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