Every year Ecuadorian taxpayers must deliver the Personal Expense Form established by the Internal Revenue Service (SRI), otherwise there are penalties. Below we highlight the most important points to take into account when preparing said procedure.
What is the SRI Personal Expense Form?
It is a type of documentation requested by the Internal Revenue Service (SRI) where the specific amounts of deductible consumption of five items are recorded: health, housing, education, food and clothing, with the aim of reducing the value to pay of the income tax (IR) annual.
Who should submit it?
- Workers in relation to their employers, those who had expenses between $5,635 to $14,651.
- Employees who have registered items for a value less than $5,635 but register payments or consumptions greater than said amount and want the Internal Revenue Service (SRI) return part or all of the tax paid in excess.
- People who have not submitted the Expense Projection Form for the year 2018 but did have expenses and want the Internal Revenue Service (SRI) return part or all of the tax paid withheld by the employer.
- Natural persons who are not required to keep accounts but wish to benefit from the deduction to pay a lower amount of annual income.
When do they have to pay?
It must be canceled according to the day established by the ninth digit of the taxpayer’s identification number or RUC.
What penalties are there if I don’t show up?
In case of non-compliance, economic sanctions are applied that vary according to the type of person who has committed the fault:
- Natural persons who are forced or not to keep the accounts they must pay $30.
- Natural persons who are forced to keep the accounts they must pay $45.
Personal Expense Form
You can download the form by doing click here.
How to fill in the form
Taxpayers must enter the SRI web page and complete the process online. Remember to have your identification number or RUC as well as your login password at hand as it will be requested by the system. Once with the form in hand, you proceed to complete the following information:
- Identification of the taxpaying employee: information that must be filled out only by the employee.
- 101 Identification number.
- 102 Surnames and full names.
111 Total projected expenses: sum of the previous two. This value must not exceed 50% of your income or the limit established by the SRI for the current year.
112 and 113 Employer data (Income Tax withholding agent)
- Projected taxable income.
- 103 Projected values for annual remuneration: monthly income for working time in the company without including the value of the contribution to the IESS.
- 104 Values projected with other employers in a dependency relationship: include the value of the contribution to the IESS.
- 105 Total projected income: sum of the previous two.
- Projected expenses.
- 106 Projected housing expenses.
- 107 Projected education expenses.
- 108 Projected health expenses.
- 109 Projected clothing expenses.
- 110 Projected food expenses.
- 111 Total projected expenses: sum of all the above. This value must not exceed 50% of your income or the limit established by the SRI for the current year.
- Identification of the withholding agent: information that must be filled out only by the worker.
- 112 and 113 Employer data (Income Tax withholding agent).
What is it for
- Control and management of personal income and expenses.
- Reduce the amount payable income tax (IR) annual.
- Make a backup of the personal expenses incurred in the year.
Where and how much to present it
It must be submitted to the employer for verification of the information. If there is any discrepancy, you must do another process.
Projection of personal expenses in the SRI
The established base of the income tax table (IR) indicates the amount necessary so that workers do not have to pay IR in the current year, therefore said amount varies every year and differs between the public and private sectors. The base for the year 2019 is $11,310.
- Private sector: Every worker who earn less than $1,040.80 per month, including overtime and commissions, will not pay IR this year. Remember that the personal contribution to the IESS is deducted from said amount, which is $98.36 and therefore the net amount to be received is $942.44 per month.
- Public sector: Every worker who earn less than $1,064.30 per month, including overtime and other income, will not pay IR this year. Remember that the contribution to the IESS is deducted from said amount, which is $121.86 and therefore the net amount to be received is $942.44 per month.
Step by step for projection
The delivery of the personal expenses projection form for the 2019 period is until January 31, in each company where the worker works, specifically in the Human Talent department. There are different types of expenses to deduct:
- Living place: up to $3,675.75 may be deducted. This includes everything generated by the acquisition, construction, remodeling, expansion, improvement or maintenance of the main residence, rent payment, basic services and rates.
- Feeding: up to $3,675.75 may be deducted. This includes expenses for the purchase of natural and artificial products and in centers for the sale of prepared food, alimony.
- Education: up to $3,675.75 may be deducted. This includes tuition payments, graduation acts, school supplies, child care, uniforms, school transportation, computer equipment, didactic material, and interest on educational loans granted by authorized institutions.
- Outfit: up to $3,675.75 may be deducted. This includes the purchase of clothing, diapers and the manufacture of garments. No accessories or jewelry included.
- Health: up to $14,703 may be deducted. This includes payment of medical fees and health professionals, health services provided by duly authorized health centers, prepaid medicine, health insurance premiums and deductibles, medicines, medical supplies, lenses and prostheses. In case of emergencies or illnesses duly certified by the competent national health authority, up to $22,620 may be deducted.
He Personal Expenses Form It is a procedure used with the aim of reducing the amount of taxes to be paid, that is, it acts as a financial support tool, as long as the requirements are met.
Through it we can include amounts related to the basic needs of any individual, such as housing, food, education, clothing and health. Its acquisition is extremely simple since initially the process is carried out online so that it is finally delivered and evaluated.
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