Ecuador Promotes Cultural Sector through Tax Benefits
Ecuador photographer looks into the sunset. Image Credit: iStock Photos.
150% de Deducibilidad Culture Ecuador

Ecuador Promotes Cultural Sector through Tax Benefits

Soledad Quartucci

Ecuador Promotes Cultural Sector through Tax Benefits.

Companies and individuals that finance proposals related to entrepreneurship, arts, innovation, cultural heritage and social memory will be able to access a new government incentive, which consists of deducting 150% of the amount invested at tax time.

With these actions, the cultural sector seeks a financing alternative for cultural work, guaranteeing access to goods and services for citizens and the economic reactivation of the sector. The 150% deductibility plan, is a financing initiative for the economic reactivation of the sector.

The norm to access this incentive was approved by Minister María Elena Machuca.

 

 

Artists and managers interested in this benefit must follow the procedure that regulates this measure, which considers proposals for dance, music, cinema, theater, mapping, research, training processes, restoration, museography, festivals, among others. Likewise, companies must follow the respective process to access the tax incentive.

 

 

 

 

More than 300 artists and cultural managers gathered at the 150% deductibility talk, a financing initiative for the economic reactivation of the sector.

“Investing in Culture is investing in your country,” under this slogan the Ministry of Culture and Heritage developed for the second time an informative talk about the benefits of the 150% deductibility tool, a tax incentive that drives the economy of the cultural sector.

Last Thursday, via telematics and in person, around 300 artists, nationwide, were part of the 150% deductibility informative talk, a regulation established by this State portfolio so that any proposal of the cultural sector may be susceptible to sponsorship, which may be monetary or non-monetary. The goods and/or services must be valued at the regular commercial price, complying with the payment of indirect taxes that correspond to this contribution.

 

 

Artists and cultural managers interested in being part of this benefit may access it by presenting their proposals related to: dance, music, cinema, theater, mapping, research, training processes, restoration, museography, festivals, among others.

Within the framework of his intervention, Alex Grijalva, director of Monitoring and Evaluation of the Undersecretary of Entrepreneurship, Arts and Innovation explained the benefits:

1.- Cultural sector: Artists and cultural managers will receive direct financing for their proposals, encouraging greater sources of employment, and increasing income for workers in the cultural sector; In this way, the economy of Ecuador will be revitalized.

2.- Business sector: Companies that decide to join the crusade for culture and invest in the proposals of Ecuador’s cultural managers, will receive a refund of 1.50 for every dollar invested, which will be reflected in their tax reconciliation corresponding to the payment of Income Tax for 2023, along with other benefits that may be accessed according to the agreements established by the parties: Company-Cultural Management.

3.- Citizenship: The new plan will enable access to cultural goods and services. It will contribute to economic reactivation while social development will be generated through Culture.

 

 

 

 

During the citizen dialogue, artists and cultural managers had a very active participation.  They expressed their experiences and concerns and a practical example was developed for how to request the endorsement so a proposal is susceptible to sponsorship and provided with institutional support for the cultural sector.

In addition, the requirements for sponsorship management were indicated, which are:

  • The contract between the entrepreneur and the artists and/or cultural managers,
  • The signing of an invoice for sponsorship together with the support of the disbursement for monetary sponsorships, or the delivery-reception certificate in the case of non-monetary sponsorships.
  • The request and issuance of the certification which will be required directly by the sponsors and will constitute a 150% registration endorsement in the field of additional deductions in the payment of Income Tax.

The Ministry, as the governing body of the National System of Culture, works to guarantee the exercise of cultural rights, which is why the interaction with the target audiences and direct beneficiaries of the projects is a key tool to improve Ecuador’s public policies aimed at reviving the country’s economy.

“For every dollar that your company invests in culture, the State returns 1.50,” published the Ministry of Culture and Heritage on a press release on February 9.

Alex Grijalva, director of Monitoring and Evaluation of the Undersecretary of Entrepreneurship, Arts and Innovation affirmed with certainty the impact that the cultural sector has on the economic contribution to Ecuador and emphasized: “Investing in culture is investing In our country.”

“It is our responsibility to generate spaces for dialogue with the artistic and cultural sector, to which we owe ourselves. We are sure that the 150% deductibility is a financing alternative to promote cultural activities, guaranteeing access to goods and services for citizens together with the economic reactivation of the country,” Mauricio Ullrich, Vice Minister of Culture and Heritage.

To learn more:

150.culturaypatrimonio

Email: [email protected]

 

Dr. Soledad Quartucci | Founder

Latina Republic is a reporting, research, and advocacy nonprofit organization advancing human rights in the Americas. Latina Republic fills the void in coverage of urgent social, political, environmental, economic and gender inequities affecting the Americas. Latina Republic’s mission is to inspire humane policies that fortify relations between the U.S. and Latin America. Our work is guided by peaceful international relations focused on solidarity. We believe asylum and seeking refuge is a human right. Our work envisions a world where neighboring countries are seen as partners, and immigrants and refugees don’t have to live in the shadows. Our goal is to advance peaceful dialogue by highlighting local perspectives that don’t make it into the mainstream news. Our vision is that this knowledge will assist all stakeholders in solving regional problems while strengthening ties.

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