leagle
12/15/2016 07:22 EST
Can someone please clarify the current law. I understand that you will be taxed on any amount over $1098. How often can you do this under the limit and not be taxed. Can I withdraw $1000 at a foreign ATM a few times a month without being charged the tax?
Thanks
Post a Reply
 1 0 abuse
|
|
withoutego
12/15/2016 09:24 EST
The question is not clear.
What is a foreign ATM?
The thread title suggests you mean a tax on cash carried thru border control as you leave Ecuador.
or do you mean the USA taxing money leaving that country?
In the body of your post you talk about monthly withdrawals from an ATM....presumably money not leaving Ecuador.
What country is doing this taxing?
Have you every lived in Ecuador?
sinego
Post a Reply
 0 1 abuse
|
|
|
|
leagle
12/15/2016 09:27 EST
Sorry for not being clear. I am a EC resident with money in an Ecuadorian bank. I want to use my debit card abroad. I am told that I will automatically be charged the 5% each time I make a withdrawal.
Post a Reply
10abuse
|
|
withoutego
12/15/2016 09:42 EST
Thank you for the clarification.
I have no specific knowledge.
Is it your impression that this is the bank implementing Ecuadorian law? If so ask them to cite the chapter and verse. Can't imagine a bank doing this on their own.
Simple (maybe) solution would be to use an account in the states.
How about Banco Pichincha Miami Agency? I have thought about having my SS sent there so I could have the same account available in Ecuador and the USA.
For the time being the USA has no outflow controls that I know of. But then I have so little money I wouldn't encounter such problems.
Good luck finding a solution - let us know.
sinsuelto
Post a Reply
01abuse
|
|
mantatiger
12/15/2016 19:06 EST
From what I understand, is the EC govt is trying to keep money in their country. This is why they can offer 7% interest on 1 year CDs. But to take the money out of the country, they charge 5%. So that way they do not get a bunch of foreign investment just to get the high interest rates. So yes, you will be charged 5% on any withdrawal.
As for the $1098 limit. That is what you can personally take with you in your pockets when you leave the country without being taxed. The $1098 is a totally different thing than bank withdrawals. expect 5% on any amount you take out while in the US on an EC bank.
Post a Reply
10abuse
|
|
|
|
|
|
|
|
PACountryBoy
12/20/2016 19:44 EST
GERAT....I got your answer but can you tell me what it was that you responded to. I never saw it. As usual, totally lost. THX! : >))))
Post a Reply
10abuse
|
|
gerat
12/21/2016 08:37 EST
mantatiger
Login to Contact
12/15/2016 19:06 EST
From what I understand, is the EC govt is trying to keep money in their country. This is why they can offer 7% interest on 1 year CDs. But to take the money out of the country, they charge 5%. So that way they do not get a bunch of foreign investment just to get the high interest rates. So yes, you will be charged 5% on any withdrawal.
Post a Reply
10abuse
|
|
leagle
12/21/2016 08:41 EST
This was my original thread...just got the word....i bank with JEP....they will not charge the 5% tax on the 1st $5000 per year of withdrawal by foreign ATM. After that they will. So if your spouse also has an account you can withdraw $10K per year with no tax
Post a Reply
01abuse
|
|
|
|
PACountryBoy
12/21/2016 16:14 EST
LEAGLE....Thx...I't's been very confusing. First it was $10K...then $1,009....Now $5K. Appreciate it. : >)))
Post a Reply
01abuse
|
|
remoore2001
12/21/2016 21:45 EST
Country, this is very easy. Keep your money in a stateside account and use the ATM machines here. If the money is never deposited in Ecuador there is no 5% penalty. These folks are making it way to hard. Been doing this for over 7 yrs, using my Morgan Stanley acct.
Post a Reply
01abuse
|
|
PACountryBoy
12/22/2016 09:09 EST
Reemoor...THX! That's what we do to get money INTO EC. BUT.... If You sell a house, in EC and net $20K, getting it out is the difficult part without paying the 5% exit. If the buyer has an account in the U.S., no problem but if they don't.... : >(((
Post a Reply
01abuse
|
|
remoore2001
12/22/2016 12:54 EST
Then you make it clear to the buyer that you will be charging 5 percent more as I did when I sold my condo in Crucita. Whithin 2days the buyer fiqured out how to use a US acct.
You regularly hear how gringos are charged more. Well just turn the tables if the buyer is a local.
Post a Reply
01abuse
|
|
PACountryBoy
12/23/2016 10:23 EST
REMOOR....LOL...only a devious mind such as yours would be so creative!!!!! THX! And Merry Christmas! : >))))
Post a Reply
01abuse
|
|
OceanHideaway
12/23/2016 20:55 EST
...that´s not devious...
That is called intelligent and savvy (short for savoir faire)
It is also called being a practical business person.
So PAC re you admitting that you are in fact none of the above?
Post a Reply
10abuse
|
|
danng
1/23/2017 12:42 EST
The BANCO PINCHINCHI clearly told me its 5% for all international transactions.I have a VISA CREDIT CARD with BP and when I bought things through AMAZON and WALMART 5% was added on .I assume same with my BP DEBIT CARD
Post a Reply
00abuse
|
|
|
|
|
|
mootpoint20
2/21/2017 15:47 EST
If I run down to Ecuador with two or three thousand, decide to leave immediately, will I be expected to pay taxes on those three thousand dollars? (This is a theoretical question to get a clearer idea)
Post a Reply
00abuse
|
|
leagle
2/21/2017 16:05 EST
Yes but I have yet to hear of a case where anyone was even asked how much money they were taking OUT of the country. But...if they do ask and you lie and they find out the penalty is 50%.
Post a Reply
00abuse
|
|
kmoriarty45
2/21/2017 16:37 EST
Leagle say Yes and I say No...IF... your question pertains ONLY to being a tourist on a tourist visa, visiting the country for less than 90 days.
The tax imposition is on people "residing" in Ecuador, NOT the casual visitor.
I friend, who visited quite recently, specifically made an inquiry about this and that was what was relayed to him. A tourist is more likely to be questioned about how much money they have, coming into the country than leaving.
Residents are a slightly different kettle of fish.
I don't want people coming here to visit to think the government is going tax them on what they have left over from their vacation money.
Post a Reply
00abuse
|
|
windshadow
2/21/2017 17:30 EST
I have lived here a long time and it all confuses the H out of me. Imagine the poor guys that just want to travel the country and have some cash on board. Daang posted a good question about using a card to make purchases and being charged 5%. I still don't understand that one.
Post a Reply
00abuse
|
|
|
|
|
|
