Image Credit: Asamblea de Ecuador, Twitter.
Ecuador Ley Urgente

Ecuador’s Urgent Economic Law Project-Tax Benefits for Security Donations

Soledad Quartucci

Ecuador’s Urgent Economic Law Project-Tax Benefits for Security Donations

The urgent law will include tax benefits for those who donate equipment and supplies to the National Police in matters of security, reports El Universo.

The report for the second and final debate will be presented to the full National Assembly on Tuesday, December 19.

In the last session of analysis and preparation of the report for the second debate of the urgent project for economic efficiency and job generation, the Economic Development Commission incorporated a 150% income tax deduction for donations of equipment and supplies made in favor of the National Police for security purposes.

The proposal was put forward by the committee’s president, Valentina Centeno, who represents the government bloc in that commission. She justified it by stating, “Everyone is aware of what the country’s priority is at the moment, and if this law can contribute something related to security to equip the National Police, it would be a good opportunity.”

 

 

The text incorporated into the urgent project sent by the Executive is as follows:

“Incorporate within the deductions of Article 10 of the Organic Law of Tax Regime the following: Donations of equipment and supplies made by all natural and legal persons, national or international, to the National Police within its institutional mission of internal protection and maintenance of public order and citizen security will be deductible from the donor’s income tax. The deduction may not exceed the percentage of the donor’s gross income in the corresponding fiscal year.

For this benefit to apply, the equipment or supplies must be new or in optimal condition for use; they must comply with the standards and technical specifications established by the National Police.

Donations must be registered with the tax authority and the National Police, and a verification mechanism will be established to ensure compliance with the established requirements.”

According to the ruling party legislator, this measure will improve the operational capacity of the National Police, promote community participation in security, reduce the state budget burden through this tax benefit, and update the technology and efficiency of security in the country.

In the bill that will enter into debate and approval in the National Assembly on Tuesday, December 19, additional 150% deductions are included for the calculation of the taxable income of income tax, for advertising, promotion, sponsorship, or patronage expenses, made in favor of:

  • Athletes, and sports programs, projects, or events.
  • Low-income students in dual training, third or fourth level, intended for scholarships or subsistence expenses qualified by the Senescyt.
  • Basic and high school educational entities, public or fiscal-commissioned, intended for scholarships, food, and infrastructure. It also applies to private basic and high school educational entities located in rural and marginalized urban areas.
  • Non-profit entities whose activity focuses on eradicating chronic child malnutrition and caring for pregnant and lactating mothers, qualified by the governing body in the field.
  • Non-profit entities whose activity focuses on serving people with disabilities, qualified by the governing body in the field.
    Non-profit entities whose activity focuses on caring for people with catastrophic, orphaned, or rare diseases, or on the comprehensive care of cancer.
  • Non-profit entities whose main activity focuses on the care, defense, and protection of animals.
  • Non-profit entities whose main activity focuses on the care, defense, and protection of children and adolescents.
  • Added to this list of deductions are donations made by private companies for equipment for the National Police in the fight against crime and organized crime.

Legislator Nicole Saca (ADN) was responsible for moving the approval of the report for the second debate of the urgent project and obtained nine votes in favor.

The deadline for the National Assembly to process the urgent economic law project expires on December 27th.

 

See Related: 

Economic Efficiency and Job Generation Bill

 

Soledad Quartucci | CEO/Founder, Latina Republic

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