Effects of the exit of foreign currency tax in the importing industrial sector of Riobamba, Ecuador

Authors

  • Mariana Isabel Puente Riofrío
  • Kevin Giancarlo Solano Armijo

Keywords:

Tax credit, Capital flight, Taxes, Liquidity, Profitability, Exit of foreign currency

Abstract

This research analyzes the effects of tax imposed on capital flight in the industrial import sector of Riobamba – Ecuador. The Ecuadorian government imposes taxes on capital flight to protect the economy from capital outflow. The aim of the research is to determine the appropriate use of tax money to optimize business resources. Data collection and analysis of the current corporate structure led to a financial diagnosis of the companies. Besides a comparative analysis on the use of tax money according to current regulations was made in order to disclose the effects on companies’ profitability. The results show that using this tax as a credit is the best option for the taxpayer.

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Author Biographies

Mariana Isabel Puente Riofrío

Universidad Nacional de Chimborazo, Coordinación de Admisión y Nivelación, Riobamba, Av. Antonio José de Sucre Km 1 ½ vía Guano, Riobamba, ECUADOR.

Kevin Giancarlo Solano Armijo

Servicio de Rentas Internas, Calles Primera Constituyente y Eugenio Espejo, Riobamba, ECUADOR.

Published

2020-11-11

How to Cite

Puente Riofrío, M. I. ., & Solano Armijo, K. G. . (2020). Effects of the exit of foreign currency tax in the importing industrial sector of Riobamba, Ecuador. RAN - Revista Academia & Negocios, 5(2), 1-8. Retrieved from https://revistas.udec.cl/index.php/ran/article/view/2613

Issue

Section

Research Article

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