Do you need to declare your income taxes? You are in the right place! Keep reading and find out how to do it through the Form 108.
Any person, natural and legal, who receives any type of inheritance, legacy and donations that have increased their patrimony free of charge and whose amount is greater than the calculation base of the Income taxare in the obligation to comply with the payment of a specific type of tax.
However, even if there is no amount to pay, the declaration must always be made. In the case of inheritances and/or legacies, the document must be presented according to the date of death, while for donations the previous deed or contract is registered.
Within 20 business days, after issuing the declaration, you must go to the SRI offices and present the annexes with details about the beneficiaries, with form 108 being one of the enabling documents for the Property Registry.
You can download it by entering the following link: Form 108
What is Form 108 used for?
- Allows the Ecuadorian taxpayer to make the Income Tax declaration on income from inheritances, legacies and donations.
- Validates the equity growth motivated by certain factors.
- Taxes the transfer of domain and transfer of free titles of goods and rights located in Ecuador.
- Taxes the transfer of ownership and transfer of goods and rights that the deceased would have owned or the donor has abroad in favor of residents in Ecuador.
How to fill out form 108
The form requests the information in the following order:
- Identification of the taxpayer: heir, legatee or donee.
- Identification of the legal representative of the taxpayer: guardian, curator or proxy.
- Identification of the deceased and the succession.
- Identification of the donor and the donation.
- Income and expenses: must be exact amounts.
- Deductibles: there are spaces for cases of inheritances and donations, fill in the corresponding space.
- Tax calculation: exact amount.
- Values to pay and form of payment.
- Credit note details.
Where to present it
He form 108 It must be presented at financial institutions or through the website. In the case of natural persons who do not have a RUC, they may identify themselves with their ID number. On the contrary, people who carry out an economic activity must register their RUC number.
How to complete the process for the income tax return
At first, we must emphasize that although the form 108 forms part of the multiple documents that are used for income tax returns, this is not the only one, since is limited solely and exclusively to cases where a natural person receives inheritances, legacies and donations that have increased their patrimony free of charge.
In this sense, to complete the process, there are other documents to process that are explained below.
- Enter the website www.sri.gob.ec and click on the option «SRI online».
- At the top right of the screen select «natural person».
- In the options bar on the left, select the menu «Declarations».
- In the submenu, choose the first option «Tax return» and then the option «Preparation and sending of declarations».
- A new page will open where you must enter your ID number or RUC and the respective password.
- On the declarations screen, choose the Income Tax Form 102Aoption located at the bottom right.
- Select the year to declare click on «Continue».
- Check if the information income from billing and declared under dependency relationship it’s correct. Remember that if you have a billing, you must indicate the specific value in the corresponding box according to the type of commercial activity carried out.
- Check the Values of personal expenses, supported by invoices.
- In the case of people with disabilities, remember to enter the certification of disability and percentage indicated on the card.
- Once with the data entered, the system calculates if there is tax or income to pay or if there is a balance in favor of the taxpayer, and how much in each case. When said amount is indicated, indicate in «Continue».
- According to your case, indicate the way to pay or make select «Declaration without value to pay»then press on «Continue».
- Finally, check the information again and if your return has no errors, select on «Continue» and then print the form.
Important Facts About Form 108
Who is it for?
Applies to all beneficiaries of inheritances, legacies and donations who have increased their assets free of charge
What is the cost of the procedure?
Carrying out the process is totally free.
What are the requirements to complete the process?
RUC number and key. Depending on the case, we have
- Estate: Property tax letter or Cadastral Record, no certificate of payment.
- Sole Proprietorships: Net worth value.
- Vehicles: Registration of each vehicle.
- Cash: Value at the date of death.
- Furniture: Commercial value established by the taxpayer.
- Bank credits: Balances at the date of death.
- Shares, shares and others: Current price, letter from the legal representative certifying the net worth of the last balance and the number of shares of the deceased establishing the percentage with respect to the social capital
What are the penalties for not filing?
- If you do not submit the form within the limit established by the Internal Revenue Service (SRI)the taxpayer must pay 3% of the tax caused, plus the interest rate to date, which is currently 0.979%, for each month of delay (this price varies constantly).
- If you did not file a tax return, the taxpayer must pay a fine of 0.1% of the total income, with interest included, which begins to run from the day after the expiration of the term.
One of the essential documents for the declaration of income taxes is the Form 108, necessary for those who receive any type of inheritance, legacy and donations that have increased their heritage free of charge, otherwise it would be an illegitimate property. The easy thing about this procedure is that it can be handled online to only present it in person at financial institutions.
However, remember that there are other forms for the payment of taxes, comply with their execution and you will avoid sanctions.
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