Ecuador

Decree Law for Family Economy

The Decree Law for Family Economy in force since June 2023, incorporate reforms to the personal expenses regulations.

For individuals without dependents, the reduction amount for personal expenses is equivalent to 18% of the lower value between: the personal expenses declared in the respective fiscal year, and the value of the basic family basket multiplied by seven.

Likewise, for individuals with dependents, the amount of the personal expense reduction is equivalent to 18% of the lower amount between the personal expenses declared in the respective tax year and the basic family basket multiplied by the number of baskets corresponding to the number of dependents, according to the following table:

The Economic Efficiency and Employment Generation Law of December 2023, establishes that individuals economically responsible  of individuals with disabilities, catastrophic, rare and/or orphan diseases, the amount of the reduction for personal expenses will be equivalent to 18% of the lower value between the personal expenses reported in the fiscal year and the value of the basic family basket multiplied by 100.