Ecuador Expat Forum - Ecuadorian income tax

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carolannemck
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11/2/2009 13:05    
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As we are probably all aware, those of us that are residents of Ecuador are required to file an income tax return on any income
we have from Ecuador or anywhere else. Ok, those of you with experience in this matter, please share the process with the rest of us. Any information would be greatly appreciated.
Carol

reemiles
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11/2/2009 13:54    
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Carol...

I believe you may be referring to earned income here in EC. Most expats here are on pension and my immigration lawyer said that pension income is not taxable in EC. She also said that EC citizens do not pay tax in their pensions. In our case we are required to pay 15% tax on our pensions to the Canadian govt. This apparently is part of a tax treaty with EC.

For those of you who work in EC, it would make sense that that income is taxable. I can't speak to other income from outside the country.

If this information is incorrect, we'd sure like to hear the "straight goods".

reemiles
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11/2/2009 13:54    
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Carol...

I believe you may be referring to earned income here in EC. Most expats here are on pension and my immigration lawyer said that pension income is not taxable in EC. She also said that EC citizens do not pay tax in their pensions. In our case we are required to pay 15% tax on our pensions to the Canadian govt. This apparently is part of a tax treaty with EC.

For those of you who work in EC, it would make sense that that income is taxable. I can't speak to other income from outside the country.

If this information is incorrect, we'd sure like to hear the "straight goods".

carolannemck
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11/2/2009 13:58    
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I hope you are correct because on another forum an attorney made a special point of mentioning that once a resident of Ecuador a person was responsible for reporting any income to the Ecuadorian government. Apparently, the US does not have such a treaty with Ecuador, so it is fortunate Canada does.
Carol

JP55301
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11/2/2009 15:33    
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Carola,
you may be right and maybe that is why the new law to report all your world assetts to EC tax man.
I experienced this in another country that did have the treaty with the US. And the way it worked there was I paid taxes in the foreign country and when I filed my US Taxes ( you always need to file these) they gave me a credit for the taxes i had paid making my taxable income to the US smaller. But this needs to be checked with both a tax attorney in Ec and one in your country of origin. Usually one does not know the laws of the other.

All times are ET.  


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