13 Jan The tax program adapts to the impact of COVID-19

The health crisis that the country is going through has forced the tax authorities to design a support and reprogramming plan to comply with the obligations. In this way, it is hoped to ease the burden on taxpayers.

Beyond the decisions made to prevent the virus from spreading, there are guidelines that will last for the duration of the emergency. Through Executive Decree 1021, temporary and special regulations for the payment of taxes were established. For one time only, these taxpayers have the flexibility to pay the 2019 Income Tax and the Value Added Tax (VAT) for April, May and June 2020:

1. Micro-businesses.
2. Companies with main tax domicile in Galapagos.
3. Airlines.
4. Taxpayers from the tourism (exclusively accommodation and / or meals) and agriculture sectors.
5. Regular exporters of goods or whose 50% of their income corresponds to goods export activities.

Income tax

Payments will be made in six installments in 2020, in this way:

• In April and May, 10% of the tax will be paid each month.
• In June, July, August and September 20% of the tax will be paid, each month.

Payment will be made according to the following schedule:

Value Added Tax

The VAT to be paid in April, May and June 2020 will be paid in the following months:

Other decisions

• The deadlines and terms of all tax administrative processes and the statute of limitations for the collection action are suspended, under the responsibility of the Internal Revenue Service (SRI).
• The deadline for submitting the March and April tax annexes is extended to August.
• Deadlines and terms are extended to present evidence or discharges within the administrative processes, in charge of the National Customs Service.
• The customs clearance of goods is expedited within 48 hours.
• Loan payments in the financial system are deferred between 60 and 90 days.