Expatsooner
8/24/2016 18:29 EST
This might be a "how long is a piece of string"-type question, but anyway...
What tax reporting/return requirements do expats have in Ecuador?
When we get over there, we'll be in our early 50s, earning a pension (out of our home country), which is as I understand it non-taxable as foreign-sourced income.
We obviously won't be claiming Sales tax refunds...and given the lively discussion about the merits or otherwise of Gringos claiming such, probably wouldn't even if we were able to...Gut feel is that a lot of that will disappear entirely over time, given the state of the economy, but that's another discussion...
So, given that, what reporting obligations are there...is it simply a matter of filling in the form with no (locally-sourced) income to declare, no deductions to claim and sending it off, or is that far too simplistic a view of how things work there?
I haven't mentioned interest income in local bank accounts/CDs etc., as I've read conflicting views about the merits or otherwise of holding bank accounts over there...in saying that, someone's most likely going to ask "how will you pay for local utilities/internet etc. with no local bank account...?" Answer is, I don't know as yet.
Anyway...as usual, have at it.
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windshadow
8/24/2016 19:33 EST
Spend the five bucks and call Susan for thirty minutes of conversation and answers. She is Ocean Hideaway, the moderator.
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OceanHideaway
8/24/2016 23:05 EST
Actually, this is a super quick answer:
As an American living overseas, you still file your taxes yearly. You do have a few extra months (June to be precise).
Most folks without too many assets simply use the online versions of the more popular tax filing programs.
Check with your accountant if you are using one now. They would best be able to advise you on what your new expectations as a foreign resident may be. And remember that now you will be reporting funds you have in a bank in Ecuador as part of the FATCA act, so you may want to discuss with your financial adviser (if you have that level of finances) how best to move your money into Ecuador and or what to maintain in USA accounts.
Just to summarize: if you have always handled your own taxes, you can file from Ecuador using a program online. If you have used an accountant in the past, refer to them for their advice on how best to file when you get here.
Susan
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Expatsooner
8/25/2016 00:42 EST
Sorry, I should have made myself a bit clearer.
Firstly, we are NOT from the U.S. We're Australians. As such, some differences apply.
1) If we are "non-residents" for tax purposes, there is no obligation for us to lodge Australian tax returns at all.
2) We're also not subject to FATCA or any other similar reporting measures (except in the case where a country has a bilateral IET (I think that's the abbreviation) or Information Exchange Treaty in place with Australia - Ecuador does not).
No, what I was asking about was whether as an expat in Ecuador, with no reportable income, and no expenses/deductions to claim, what are our reporting/tax return filing obligations within Ecuador?
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OceanHideaway
8/25/2016 14:18 EST
You would have a tax obligation to report any income to the SRI.
Any person (natural or business entity) must register for a RUC if entering into a business.
There are different levels of business from artisanal (small family business) and upwards. Depending on the type of business and size, you would report earnings and taxes collected from others for services or sales either monthly or quarterly.
In addition, if you own property there are municipal taxes to pay each year.
And of course you have an obligation to pay sales tax, but as a person over 65, you have the opportunity to request a refund for those payments. At this time the amount is limited to refund on non-luxury items and your income is supposed to also be limited to receive this refund; however, many expat seniors do perhaps beyond the original intention of the refund.
Otherwise, there are no tax reporting requirements in Ecuador at this time of which I am aware.
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remoore2001
8/25/2016 16:04 EST
Easy: If you aren't making money here you aren't paying taxes here. No need to file anything
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cccmedia
8/26/2016 01:06 EST
As to U.S. tax returns....
Although the U.S. does tax Expats on worldwide income, not all Expats need to do an annual filing.
For instance, an Expat getting a smallish Social Security income is off the hook for filing. The threshold was about $9-10 thousand dollars a year last time I checked.
To get the latest threshold number and find out whether you need to file, google: irs.gov who should file ....
cccmedia
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