Wednesday, September 3, 2014
Can Americans work in Ecuador? September 2014.
Q We are a few years from retirement, but are liking to make a move soon. Can Americans work in Ecuador?
I cannot resist but... Yes...every Ecuadorian is an American so yes...Americans can work in Ecuador. If you are asking if a US Citizen with a visa can? Hold onto your hats folks because guess what...the rules have changed!
If you have a cedula ...you may apply for a RUC number at your SRI...Basically you need to apply for a TAX number at the local version of the Tax office. You can then order an official factura booklet and then you SHALL be obligated to file monthly ... SEE there is a drawback here... as an official business person... and pay your 12% IVA tax on whatever you are doing with your little empresarial self.
If you are a small business, and SRI will tell you that, not me, you shall be required to file in one manner... you can also apply for IESS benefits and pay for them monthly. See the IESS in location and for more information the Ministry of Labor.
If you are a larger business, with employees or staff, you will be required to affiliate your staff and pay them benefits and contract with them. Again you will need to talk to SRI, IESS and your Ministry of labor. Once affiliated to fire staff there is a process and a payout unless there is cause and if there is a serious cause such as theft, then there is a need to involve the police and the filing of a denuncia and service thereof.
Also if you are planning on "getting your taxes back" if you are over 65, you cannot then apply those taxes against your business...something you can do to lower your monthly IVA tax for what you need to pay with your business...
...of course if you are over 65 you do still get your discounts for the movies and get to move to the head of the line in the bank so ...you got that.
...and the beat goes on...
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Source: http://www.expatexchange.com Ecuador forum