Withholding Form at Source: Format, Utility and MORE

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The payment of Income Tax is a tax obligation that corresponds to taxpayers who carry out commercial activities for profit and who are not exempt from it due to specific conditions. The Withholding Form at Source It is a legal instrument that allows you to declare the payment of a part of this tax.

We recommend that you continue reading, because in this article you will find very useful information to understand this form, its usefulness and who is responsible for filling it out. Likewise, we present the procedure to follow to complete it electronically through the system of SRI online.

Discover here how easy and fast it is to declare your Withholdings at Source online!

Source Withholding Form Format

The online format of this form is an electronic form that has been enabled by the Internal Revenue Service (SRI) system. In order to simplify the taxpayer returns process and make it easier for the user to pay their tax obligations.

This form has several boxes that are automatically completed from the data previously provided by the taxpayer and that are registered in the system’s database. It also has boxes that are filled in manually.

And, it also offers the option of editing data pre-filled in by the system as long as the information to be consigned is true. Through this versatility, it was possible to reduce the time used by users to comply with their declarations, and also allowed to reduce the margin of error.

How to Fill Out the Withholding Form at Source?

To start filling out your Source Withholding Form online, you must follow four (4) simple steps. Below we will explain the procedure to follow to declare your withholdings. Be very attentive to the instructions that we will be giving you and you will be able to carry out this procedure online without problems!

Step 1

The first step It is associated with the specification of the fiscal period that corresponds to the declaration. To do this, go to the lower right part of the screen to select the fiscal period of the month in which you are preparing your return. Continue the filling procedure, clicking on «Next».

Step 2

At second step, you will observe the selected fiscal period and your type of declaration. Therefore, if your declaration is substitute, the form will be recognized automatically. No need to enter the number of your original return.

But if, on the contrary, your statement is original, a group of questions will be displayed regarding your economic activity, which must be answered only once. Remember that the boxes present in the form will be displayed according to the answers you assigned in this section.

If any of the questions is difficult to understand, or is not sufficiently explained in the statement. You can press the blue button next to each question, to display a brief description that will help you clarify your doubts.

On the other hand, if you want to make a declaration without values ​​to report, answer «NO» to the first question of the questionnaire. Otherwise, answer «YES» and continue answering the rest of the questions that will appear as you progress. Press the «Next» button to go to the next step.

Step 3

According to the answers entered in the previous step, in the third step the system will display the sections of the form. If you have electronic billing information, the system will display tax data and automatically fill them in the corresponding boxes within the form.

NOTE
You can edit the values ​​that are filled in the boxes, as long as this is a higher value than the online SRI system automatically reports.

Once you have entered all the information regarding the declaration of withholdings in the source, press the «Next» button. In this way you will be presented with a summary of the added data. Look carefully at each piece of information provided in the form, before making the shipment.

In addition, in this summary you can also get the details of the fines and interest that have been applied to your return, only when applicable. Finally, you can enter data from the accountant that makes the declaration, answer affirmatively to the question shown at the bottom of the summary.


Step 4

And finally in the fourth step, the means of payment available to cancel the return are indicated to the taxpayers. Remember that you can add an additional bank account to the ones you have registered in the system in this same step, without having to leave the form.

Considerations:

NOTE
If you are still not sure about submitting the form, either because you lack information or want to make a prior consultation. Don’t worry, you won’t lose your progress. There is the option to «Save draft», where a copy of your statement will be recorded.
  • If the return is overdue, the form will automatically calculate the corresponding fine, according to tax regulations.
  • Make sure all the information you add to the form is correct.

Usefulness of the Withholding Form at Source

This form is intended for taxpayers to declare their Withholdings at Source in the corresponding fiscal period and under the type of economic activity that they develop.

It is, therefore, a tool used by the Tax Administration to ensure that natural and / or legal persons who must pay income tax, give an advance of this amount as a withholding.

To do this, the system takes as a reference the income received by the taxpayer due to the sales made or the services it provides. And since nowadays the computerized system of the SRI allows to declare this tax, the information that is supplied is stored in a database for each user.

How to do the procedure online?

To obtain access to the Source Withholding Form, you must enter the website of the Internal Revenue Service (SRI), through this link. As well as you can place in your search engine this address: SRI

Through the service channels, enter the SRI online and in the left side menu, you will find access to «Tax return«, And within this option will be the«Preparation and submission of declarations«. By selecting this section, the shortcut to enter your username and password will be displayed on the screen.

To log into the account of the SRI online, enter your RUC, identity card or passport number and your access code. And once inside the system, you will be able to view the available forms on the right side so that they can be selected according to the user’s needs.

Therefore, select the Withholding Form at Source, where you can make your declaration and be up to date with the fulfillment of your tax obligations. Take advantage of the new method of filling out the form electronically, thanks to this function that the SRI has enabled to streamline the process.

Who should process it?

As indicated below, they are obliged to pay withholdings and therefore submit to the SRI the Withholding Form at Source:

  • Natural persons, whether they have Ecuadorian nationality or not. Foreigners must be residents of the country.
  • Legal personalities, dedicated to the public or private sector.
  • The entities that constitute an economic unit or that have an independent patrimony.

It should be noted that according to what is established in the national tax code, any taxpayer obliged to present withholdings and does not show the return, will be sanctioned. The fine for this offense is 5% of the value corresponding to the undeclared withholding.

What is the Withholding at Source Form?

The Withholding Form at Source It is a procedure to collect the income tax in advance. This regulated by the Internal Revenue Service (SRI) of Ecuador. And it applies to all taxpayers who are withholding agents.

Currently, the declaration can be made electronically through the SRI online service. And thanks to this, it is possible to keep a more organized control of the data of each taxpayer and to create databases that are much more extensive and secure than those that were carried out manually.

Withholding at source is made according to percentage rates established by the SRI body. To have access to these updated percentages for this current year (2020), you can go to the window that we leave you below.

As you can see, in this Excel format file, the current list of percentages applied to source withholdings is presented. If it is of your interest, download this document on your computer and keep it handy for any further consultation. Since you’ve gotten this far, you now know a lot of details about filling out this online form. Thank you for choosing us to solve your doubts.

What are you waiting for to file your return through the Withholding Form at Source?

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