Reinvestment of profits as a tax incentive in the payment of income tax, Ecuador 2015 - 2019

Abstract

The reinvestment of profits is a tax stimulus that provides tax savings and an increase in productivity in the companies that apply it. This article shows a situational diagnosis on the subject and aims to analyze the effect of applying the reinvestment of profits tax incentive on the payment of income tax. This benefit reduces the payment of the tax by 10 percentage points, promoting an increase in the productivity of the companies through tax savings. The research design is quantitative, non-experimental, descriptive-correlational, ex post facto retrospective. Secondary databases provided by the Internal Revenue Service and the Superintendency of Companies are used. The results will allow to promote the application of the tax incentive by taxpayers, and provide knowledge for future research in the area of taxation. This is based on the fact that higher education institutions are delegated to contribute to the community, generating alternatives for the solution of different problems, externalizing the intellectual or academic capacities of teachers and students, in order to motivate the change and development of students peoples.