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SRI says revenue for the first quarter of 2022 was 29% higher than last year

Published on April 12, 2022

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SRI issued the quarterly report, which shows a significant recovery in both VAT and ICE. An increase in income from equity was also reported.

SRI delivered the collection figures from January to March 2022 last week.

Tax collection during that period amounted to $4.463 billion, which represented a growth of 29%, of $1.015 billion more than what was collected in the same period of the previous year ($3.448 billion).

In March 2022 alone, SRI collected $1.479 billion, without considering the temporary contributions established in the Economic Development Law.

This represents a growth of 23% ($278 million) compared to the collection of the same month of 2021 ($1.2 billion). When including the collection for temporary contributions, the total collected amounts to $1.871 billion. Meaning that the collection for assets reached $392 million in March alone.

“The increase in tax collection in March 2022 is the result of the controls carried out by the SRI at the national level, to verify the correct and timely fulfillment of obligations and combat tax evasion, in strict adherence to current tax regulations,” said Marisol Andrade, the general director of SRI.

Regarding the value added tax (VAT), in the first quarter of 2022, $1.961 billion was collected, an increase of 25% in relation to the same period of the previous year. In March 2022 alone, $589 million were raised, 28% more than in the same month in 2021.

For income tax, during the first three months of 2022, $1.184 billion were collected, an amount representing an increase of 12% compared to the same period of the previous year. The collection of this tax in March 2022 was $443 million.

Regarding these data, Napoleón Santamaría, tax attorney, commented that the level of growth in collection is very important and is a sign of increased economic activity.

Santamaría, added that it is encouraging that VAT has grown by 25%, since it feeds on purchasing, leasing, and professional services, among others. He believes that with this rate of growth, the economy may perform even better than in 2021. Additionally, he said that by having a dollarized economy, unlike other countries, inflation in Ecuador is controlled. In that sense, he said, it is all good news.

Regarding Income, he believes that the tax reform is giving results and that although it is a greater tax pressure, it is exerted on a few people who have better resources.

Marisol Andrade also reported that the tax administration identifies taxpayers who have not declared correctly or have not paid their taxes and executes persuasive actions that seek compliance with overdue tax obligations. If there is no positive response to these actions, the SRI immediately proceeds to execute the corresponding sanctioning processes.

In 2022, the SRI will continue to intensify its actions at the national level to recover public resources owed to the State or that have been hidden by taxpayers, in strict application of current tax regulations.

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