The Ecuadorian President, Rafael Correa, has led to the Assembly of Ecuador the controversial act of Law of Surplus Value; this law pursues to cut the illegal sources of accumulation of capital from the heritage of the nation.

Rafael Correa said that “any additional value that is not the result of direct action from the owner that good people, is illegitimate gain, and usually comes from their own public resources”.

The measure of present a project against the capital gains, emerged of a study that made the Government national in the nine largest municipalities of Ecuador, which showed that more than 600 million of dollars had gone to private hands, directly from negotiations with the State.

Rafael Correa explained that this project will be directed to who speculate with the land, highlighting that from now on will be considered a cost of opportunity, which is adjusted to a rate passive for deposits to a year, that will be over 7%. The President said that the tax will be applied starting from the second sale of the land, and when is resold, will be calculated the surplus (the gain additional), since with the dollarization is difficult of calculating the real value that had in sucres.

The law has, in addition, a nod to the real estate sector: they are excluded from the new tax. On that list is also the State and the State-owned companies.

The new rules of the project:

1. Rate
The fee will be 0% your taxable income is less than 24 unified basic salaries. This year, 8,784 dollars because the salary is $ 366.

2. Exemptions
The new tribute not is charged to those agencies international and “States foreigners”. Nor to mixed-economy companies.

3. Reductions

Those taxpayers that update of form voluntary their appraisals, in a year, will receive a “reduction of the 50% of them values to cancel”.

4. Control
The newly created territorial Superintendent will be responsible for the rules and regulations required.

5. Destination
The autonomous governments will be the main beneficiaries of the law. It will serve for water supply and sewerage works.

6. Budget
In specific cases, the value collected that manage the Servicio de Rentas Internas (SRI), will go to the features unique treasure account.

Source: Telesur and Daily Expreso