One of the simplest options that small and new entrepreneurs have to have their documents in order in Ecuador is the RISE, which is an ideal regime when planning to start a business and do not have high income at the moment, or provision of a payroll of employees. Next we will detail the requirements to obtain the RISE.
Activities that can be enrolled
Obtaining the Simplified Tax Regime (RISE) will have to be justified through any of the following economic activities:
- Cattle raising
- Poultry farming
- Restaurant and hotel services
- Construction services
- Autonomous work
- Retail commerce
- Other services in general, as long as they are not restricted by law to obtain the regime.
Conditions to obtain the RISE
In order to obtain the Simplified Tax Regime (RISE), the following conditions must be met:
- Be a natural person.
- Not having income greater than USD 60 thousand in the year, or if it is under a dependency relationship, the income for this concept does not exceed the basic fraction of the Income Tax levied with a tariff
- Not have been a withholding agent for the last 3 years.
- Finally, it is important not to engage in any of the restricted activities, established by law.
Requirements to obtain the RISE
It is necessary to present certain requirements in order to obtain the Simplified Tax Regime, which will be observed below:
- The original and a copy of the identity or citizenship card must be presented.
- Present the last voting certificate.
- All national or foreign natural citizens who carry out commercial, industrial, financial, real estate and professional activities, with the exception of artisans qualified by the National Artisan Defense Board, must present the original and a copy of the municipal license payment.
Finally, it will be necessary to present an original and a copy of any of the following documents:
- Receipt of water, electricity or telephone.
- Leasing contract.
- Proof of payment of property tax.
- Bank account statement or, failing that, credit card (from the last 3 months).
Steps to remove the RISE
The procedure is quick and easy, comprised of the following steps:
- Pre-registration via online, in which the process can be streamlined and general information on the address, professional association and information on the establishments must be provided. It is important to note that online pre-registration can only be done once, since the data is recorded in the system.
- Complete the entire form online.
- Print the generated PDF document.
- Then, you must go to the taxpayer service windows of the closest SRI with all the documents.
Offices to process the RISE
Below we detail some of the SRI taxpayer service windows:
- AZUAY – CUENCA
Responsible: KAREN BERMEO PAZMIÑO
Address: AV. REMIGIO CRESPO TORAL 5-28 AND LORENZO PIEDRA
Postal code: 010201
Phones: (07) 2887777
- BOLÍVAR – GUARANDA
Responsible: MARIA ELIZABETH VASQUEZ RUIZ
Address: GARCÍA MORENO Y 7 DE MAYO
Postal code: 020104
Phones: (03) 2550733 (03) 2550734 (03) 2550635
- CARCHI – TULCÁN
Responsible: JORGE EDISON NARVAEZ PUERRES
Address: AV. CORAL S / N BETWEEN PANAMA AND VENEZUELA (IN FRONT OF THE AYORA PARK)
Postal code: 150104
Phones: (06) 2980307 (06) 2983758
- CAÑAR – AZOGUES
Responsible: ESTRELLA MAGALY PULLA MOROCHO
Address: BARTOLOME SERRANO 7-14 BETWEEN BENIGNO MALO AND JULIO MARÍA MATOVELLE
Postal code: 030102
Phones: (07) 2240124 (07) 2240147
- CHIMBORAZO – ALAUSÍ
SINGLE WINDOW ALAUSI
Responsible: JOSE IGNACIO PAZMIÑO MEZA
Address: AVDA. JUNE 5 AND RICAURTE CORNER (GADM ALAUSI)
Postal code: 060201
Phones: 032931-440 Ext 100
- COTOPAXI – THE MANNA
AGENCY LA MANÁ
Responsible: MARÍA FERNANDA BERMEO SÁNCHEZ
Address: AV. MAY 19 S / N AND LOS ÁLAMOS
Postal code: 050202
Phones: (03) 2696334
- THE GOLD – HUAQUILLAS
SINGLE WINDOW HUAQUILLAS
Responsible: GEOVIN FABRICIO CABRERA TORRES
Address: AV. REPUBLIC AND SUCRE
Postal code: 070701
Phones: (07) 2511673
- ESMERALDAS – ATACAMES
ATACAMES SINGLE WINDOW
Responsible: MARIA FERNANDA TORRES MURILLO
Address: MAIN ROAD, IN FRONT OF THE ESTRELLA DEL MAR EDUCATIONAL UNIT COD. POSTCARD 080305
Postal code: 080305
Phones: 1700 774 774
- GALAPAGOS – SAN CRISTÓBAL
SAN CRISTOBAL AGENCY
Responsible: SILVIA BEATRIZ ROJAS VILEMA
Address: ALSACIO NORTHIA AND MANUEL J. COBOS, NEXT TO LA INMACULADA CHURCH
Postal code: 200101
Phones: (05) 2520128 (05) 2520011
- GUAYAS – DAULE
SINGLE WINDOW OF DAULE
Responsible: KAREN ADRIANA GALLARDO LEON
Address: PADRE AGUIRRE Y SUCRE ESQUINA, NEXT TO THE VIRTUAL LIBRARY, MUNICIPALITY OF DAULE
Postal code: 090601
- IMBABURA – IBARRA
Responsible: GRACIELA BERENICE QUINCHUQUI CRIOLLO
Address: FLORES 6-59 BETWEEN BOLÍVAR AND SUCRE
Postal code: 100105
Phones: (06) 2955031 (06) 2957045
- LOJA – CALVAS
SINGLE WINDOW CARIAMANGA
Responsible: ROSA SEVIGNE SAAVEDRA SARANGO
Address: VELASCO IBARRA AND NOVEMBER 18 – REFERENCE 10 METERS FROM THE COOPERATIVE FATHER JULIAN LORENTE
Postal code: 110606
Phones: (07) 2571 012
- LOS RIOS – BABAHOYO
Responsible: RODRIGO FUENTES INTRIAGO
Address: AV. ENRIQUE PONCE LUQUE AND AV. JUNE 25TH
Postal code: 120150
Phones: (05) 202- 5122 / (05) 202-5088
- MANABÍ – CHONE
Responsible: JANIS MARCELA VERA VÉLEZ
Address: CALLE 7 DE AGOSTO Y COLÓN (CORNER).
Postal code: 130701
Phones: (05) 2699740 (05) 2699741
- MORONA SANTIAGO – MACAS
Responsible: VANESSA MAYORGA PERALTA
Address: AV. MAY 24 AND GABINO RIVADENEIRA, CORNER
Postal code: 140101
Phones: (07) 2700138 (07) 2701559
- NAPO – TENA
Responsible: EFREN GIOVANNY RUIZ PROCEL
Address: AV. NOVEMBER 15 AND PINEDA DAY
Postal code: 150101
Phones: (06) 2886229 (06) 2887987 (06) 2887965
AGENCY EL COCA
Responsible: KARLA GABRIELA PONCE BENAVIDES
Address: AV. OCTOBER 9 AND PUTUMAYO
Postal code: 220150
Phones: (06) 2860666 (06) 2860822 (06) 2860890
Responsible: FERNANDO VLADIMIR JIMÉNEZ LANDÁZURI
Address: 9 DE OCTUBRE Y CESLAO MARÍN ESQUINA
Postal code: 160103
Phones: (03) 2885538 (03) 2885300 (03) 2885756
- PICHINCHA – CAYAMBE
SINGLE WINDOW CAYAMBE
Responsible: MÓNICA JAQUELINE FARINANGO TUQUERRES
Address: TERÁN 702 Y SUCRE IN FRONT OF THE CENTRAL PARK, INSIDE THE MUNICIPALITY FACILITIES
Postal code: 171002
Phones: 1700 774 774
- SANTA ELENA – LA LIBERTAD
Responsible: MÓNICA PATRICIA PUCHA PARRA
Address: AV. OCTOBER 9 451 AND JOSUE ROBLES BODERO
Postal code: 240350
Phones: (04) 2782800 (04) 2786400
- SANTO DOMINGO DE LOS TSÁCHILAS – SANTO DOMINGO
SANTO DOMINGO AGENCY
Responsible: DIEGO MENDIETA ESPINOZA
Address: AV. QUITO 1486 AND LOS NARANJOS (IN FRONT OF THE IESS)
Postal code: 230102
Phones: (02) 2743407 (02) 2743406
- SUCUMBÍOS – AGRIO LAKE
NEW LOJA AGENCY
Responsible: LUIS HERNAN GALARZA CEVALLOS
Address: AV. ELOY ALFARO 908 BETWEEN PROGRESO AND AV. FROM THE CHOFER (BEHIND THE COLLEGE OF ENGINEERS)
Postal code: 210201
Phones: (06) 2832111 (06) 2832165
- TUNGURAHUA – AMBATO
AMBATO SUR AGENCY
Responsible: ALEX OSWALDO MIRANDA SOLÍS
Address: AV. MANUELITA SÁENZ AND FRANCISCO DE GOYA
Postal code: 180101
Phones: (03) 2413715 (03) 2414602 (03) 2412797
- ZAMORA CHINCHIPE – YANZATZA
SINGLE WINDOW YANTZAZA
Responsible: MARISOL YESSENIA CASTILLO CHAMBA
Address: CALLE ZAMORA S / NY ARMANDO ARIAS
Postal code: 190550
Phones: (07) 2300027
The cost of the RISE can be validated on the SRI online registration page: https://declaraciones.sri.gob.ec/sri-en-linea/#/consulta/15
Maximum amount for issuing the voucher
In each month and according to the corresponding category, citizens who are registered in the Tax Regime must issue sales receipts only up to the values presented below:
- Category 1
Income amount in USD: from 0 to 5,000 USD.
Maximum monthly amount in USD of all activities: 420 USD.
- Category 2
Income amount in USD: from 5,001 to 10,000 USD.
Maximum monthly amount in USD for all activities: 850 USD.
- Category 3
Income amount in USD: from 10,001 to 20,000 USD.
Maximum monthly amount in USD of all activities: 1,700 USD.
- Category 4
Amount of Income in USD: from 20,001 to 30,000 USD.
Maximum monthly amount in USD of all activities: 2,500 USD.
- Category 5
Income amount in USD: from 30,001 to 40,000 USD.
Maximum monthly amount in USD of all activities: 3,350 USD.
- Category 6
Income amount in USD: from 40,001 to 50,000 USD.
Maximum monthly amount in USD for all activities: USD 4,200.
- Category 7
Income amount in USD: from 50,001 to 60,000 USD.
Maximum monthly amount in USD of all activities: 5,000 USD.
It is important to clarify that the amounts should not limit the amount of vouchers that the taxpayer can issue. In the same way, without defect of the maximum amounts indicated, RISE taxpayers may also issue sales receipts with values higher than those indicated for up to three months in the same fiscal year, this, considering the level of transactionality that occurs in such periods.
However, the sum of all the receipts must be within the maximum income limits established according to the category in which the taxpayer is located.
What is RISE?
The Simplified Tax Regime (RISE), is a voluntary registration regime active since 2008, which replaces the payment of Value Added Tax (VAT) and Income Tax, through monthly installments and aims to improve the tax culture in the country.
It is a system specially designed to facilitate the payment of taxes to a certain group of taxpayers in EcuadorThis sector corresponds to a limited group of entrepreneurs, comprised of those who generate sales equal to or less than $ 60,000 per year and who, if applicable, have fewer than 10 employees on their payroll. It is a simpler way of paying taxes for a commercial activity than through the Single Taxpayers Registry (RUC).
The beneficiaries of this scheme will not be forced to deliver invoices to their buyers., since they will be able to give you sales notes or tickets from registers authorized by the Internal Revenue Service (SRI). The payment of taxes is made monthly and the amount of the payment will depend on the type of activity that each entrepreneur carries out and the volume of income they have.
To obtain more information about the RISE, such as its obligations, sanctions and / or benefits, it is recommended to visit the website of the Internal Revenue Service of Ecuador (SRI) http://www.sri.gob.ec/web/guest/230@public .
Among the most relevant benefits that RISE grants can be seen:
- Not making declarations, consequently, saves on the purchase of forms and on paying accountants who are in charge of making them.
- Avoid withholding tax.
- Use simple sales vouchers, in which you only have to specify the amount of the sale and the date.
- Not being obliged to keep common accounts.
- Regarding IESS affiliation, for each new employee who joins the payroll and who is affiliated with the IESS, 5% of the fee will be deducted until a maximum of 50% discount is reached.
- Regarding the payment of taxes, a fixed rate is calculated that is paid monthly (depending on the average annual income generated by the activities) in any financial entity that has an agreement with the SRI.
RISE legal bases
This personal and non-transferable document is legally based on the following articles:
- Constitution of the Republic of Ecuador. Articles: 66 and 300.
- Law for the Creation of the Internal Revenue Service. Articles: 2 and 9.
- Tributary Code. Articles: 115, 116, 119, 120, 121, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134 and others.
- Internal Tax Regime Law. Articles: 97.1 and following.
- Regulation for the application of the Internal Tax Regime Law. Articles: 215 and following.
- Resolution No. NAC-DGERCGC16-00000155.
- Resolution No. NAC-DGECCGC10-00013.
Every holder of the RISE must comply with the following legal obligations:
- Update the information when you exceed or reduce your recorded income at the time of enrollment in RISE.
- Pay your monthly installment on time or prepay the year in advance.
- Issue sales receipts authorized, exclusively, for the taxpayer’s own transactions.
It is also important to take into account the following recommendations:
- Sales receipts cannot be transferred or loaned to third parties. The responsibility for its issuance belongs to the owner.
- The sales notes or tickets of the cash registers must state the date of the transaction and the amount of the sale (without breaking down the 12% VAT).
- Sales receipts must be delivered in transactions over $ 12, although at the buyer’s request they must be issued for any value.
- At the end of the daily operations, the taxpayer must issue a note of sale, which will include all transactions made for amounts less than or equal to 12 dollars, for which he did not issue a receipt.
- You will not be able to modify or adulterate the information on the sales receipt, nor issue expired receipts or with incorrect data.
- Sales receipts can only be printed at printers authorized by the SRI.
Who can’t get the RISE?
Not all citizens who undertake commercial activities in Ecuador will be authorized to obtain the Simplified Tax Regime (RISE), To be eligible for the procedure, it is important not to engage in any of the following activities restricted by law:
- Stock Brokers, commonly known as Brokerage.
- Storage of third-party products, such as warehouse companies that provide goods storage services for other people.
- Customs agents who are dedicated to carrying out foreign trade procedures.
- Marketing and distribution of fuels, including those who have service stations in which any type of fuel is sold (diesel, extra, super, jet fuel, etc.)
- Owners of casinos, bingo halls, gambling halls or any of these gambling-oriented venues.
- Those whose objective is to deliver publicity, such as agencies that carry out television commercials, advertising, among others.
- Organization of shows.
- Free professional practice, that is, those natural persons (with or without professional title) who, making use of their knowledge, they carry out professional activities in various fields of occupation. For example doctors, lawyers or architects who have an office, practice or simply provide some kind of advice or help.
- Production and commercialization of goods with Special Consumption Tax, such as producing taxed goods, such as alcoholic beverages.
- Printers authorized by the Internal Revenue Service, that is, those natural persons who are owners of a printing company, who carry out sales receipts authorized by the SRI.
- Real estate sale and purchase brokerage.
Differences between RISE and RUC
Currently, it is common for citizens who want to start an economic activity to ignore the difference between the Simplified Tax Regime (RISE) and the Single Taxpayer Registry (RUC), below we detail their main differencess:
- They are two different tax regimes.
- The RUC has been similar to the identity card, but before the Tax Authority. RISE, on the other hand, is a tax regime, as is the General Regime.
- All contributors are registered in the RUC, while only a fraction of citizens are registered in the RISE.
When it comes to tax purposes, citizens have to, as their first formal duty, register in the relevant registries. By doing so, they will be formalizing their activity and initiating a series of tax obligations, in this case, the Unique Registry of Taxpayers (RUC) is the name given to said registry in Ecuador.
Therefore, unlike the RISE, the RUC is a personal and non-transferable registration number that identifies the citizen as a taxpayer before the Tax Authority and, in turn, allows him to formally develop any legal economic activity in Ecuador, it is also normally used when businesses handle large amounts of money.
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