Drivers' License
We may not have to take the time consuming drivers license course! Yes, the law changed last year. This info previously appeared is SOZ several months ago, but I missed it. Maybe you did too.
Here is the latest law on Ecuadoran drivers licenses courtesy of Pro-Ecuador blog http://blog.pro-ecuador.com/?p=3755 :
Thanks to a post on the Ecuador_expats yahoo groups bulletin board, we have the following information. This is a good site to join, by the way, to read about real people living in Ecuador.
The new law is only for returning Ecuadorians and expats with a series 9 permanent residency visa. It is called “Canje de la licencia extranjera.” The law states that Ecuador will recognize the validity of International documents and permissions regarding driving in conformity with norms and requisites in international instruments (drivers licenses).
The requisites are as follows:
1. Original and copy of the original valid foreign drivers license.
2. Original and copy of your ID documents such as cedula and censo. You receive these documents after you get your residency visa.
3. Original certificate of authenticity. This is an apostilled document from your home state’s secretary of state office saying that your driver’s license is valid. It must be translated into Spanish.
4. Original and copy of your blood type. You can get this at the Ecuadorian Red Cross for $2.50.
5, Two photographs, facing, ID size
6. Pass the psychometric exam and the driving test (written, practical, and medical). The psychometric exam is a coordination test.
7. Fill out the special request form which you get from the Transit office in Quito, or you can download it from the www.ant.gob.ec website. ANT stands for Agencia Nacional de Transito in Quito.
I have added the websites and its details (in Spanish).
Print this form for application for drivers license:
http://www.ant.gob.ec/index.php/internacionales/homologacion/canje-de-licencia-de-conducir-extranjera-por-licencia-de-conducir-ecuatoriana-art-10-lotttsv
Government website for Transit Authority: http://www.ant.gob.ec/
CANJE DE LICENCIA DE CONDUCIR EXTRANJERA POR LICENCIA DE CONDUCIR ECUATORIANA
Con el afán de dar cumplimiento a lo dispuesto en el artículo 10, de la Ley orgánica de Transporte, Tránsito y Seguridad Vial (LOTTTSV) publicado el 29 de marzo de 2011 en el Registro oficial 415; En el cual se reconoce que los ciudadanos ecuatorianos y extranjeros residentes en el país que tengan una licencia de conducir profesional o no profesional emitida por un Estado extranjero y que se encuentre vigente, podrán canjear la misma con su similar ecuatoriana. En todos los casos se deberán cumplir los requisitos establecido en el artículo 94 de la citada ley, sin que el documento extranjero sea retirado.
Requisitos:
Original y copia a color de licencia de conducir extranjera vigente
Original y copia de cédula de identidad o pasaporte, visa y censo
Original y copia a color del certificado de la licencia vigente emitido por una de estas instituciones:Por la Embajada o Consulado del país de origen en el Ecuador, en castellano, o
Por la Embajada o Consulado del país de origen de la licencia de conducir de la Representación Diplomática del país mas cercano, en castellano, o,
Por la entidad de Tránsito autorizada del país de origen, el mismo que en caso de no estar en castellano deberá ser traducido y notariado en el Ecuador, o
Por la entidad de Tránsito autorizada del país de origen, apostillada en el caso de que se emita en castellano.
Original y copia del carnet del tipo de sangre
Dos fotografías actualizadas a color tamaño carnet
Llenar Formulario para canje de licencia de conducir extranjera. (downlod this form to complete)
NOTA:
Al efectuarse el proceso de canje de licencia de conducir extranjera por la licencia de conducir ecuatoriana, las Agencias de Atención al Usuario NO retendrán la licencia de conducir extranjera y SI se tomará los exámenes establecidos en el Art. 94 de LOTTTSV.
El trámite es personal
Let us know how this works!
Friday, July 6, 2012
Monday, June 11, 2012
Classy Communication
Classy Communication
Do you remember how great it was to receive mail in the mailbox – say, an unexpected card or letter – personalized, just for you? You saw your name on the envelope with a stamp in the upper right-hand corner – then you opened it excitedly, wondering what’s inside.
You appreciated the time the sender took to select the card, sit down and write their thoughts, then pen your name on the envelope.
Yet, we have gotten away from cards and handwritten notes, mailing them “snail mail.” Why is that?
Cards are expensive. And time consuming. I always loved to go to Hallmark! I would stand there in the aisle, reading cards for 15 minutes or so – laughing out loud. And sometimes I would find just what I wanted on the outside of the card, but the message inside wasn’t quite what I desired to say. So I’d keep looking. Sometimes I would settle for the message by marking through the words.
At the cash register, a couple of cards would cost $8.00 with tax. So, not everyone got a Hallmark card.
We seldom had the time to visit the mall, or to the store for a good selection of cards. So, many of our best impulses went fleeting away. When on vacation, we’d buy a handful of postcards, go back to our hotel room to hand write our messages and look up the addresses. Afterwards, there was trying to find the local post office.
In our insurance business, we always sent out Thanksgiving cards. We’d order the cards from a catalog (again, we may like the front, but not the message). After receiving a box of 300, I’d make labels for our clients and friends, then put the labels on the cards. Later, we would busily sign every card, sometimes add a message, then stuff, stamp, and seal envelopes. Lots of work!
About four years ago, that all ended! In Gary’s networking he met a very successful man who introduced him to the best tool on the market for classy communication. Not only was it classy, but it was economical. It felt like having a personal assistant!
Immediately, we implemented it for our personal lives as well as our business. The tool is Send Out Cards (SOC). SOC was started by Cody Bateman, who believed that most people think of others and want to send them a card, but distractions cause those simple promptings and intentions to fall through the cracks. When moving from Utah to New York, he wanted to pause and say goodbye to his nearby brother, but time constraints urged him to leave. Then his brother died suddenly in an industrial accident. Cody never forgot the incident. Years later he designed SOC, starting in his garage.
SOC is all on the internet. There is no software to download to your computer. You can go anywhere in the world, sign on, and send a card using the internet. However, once a card is created, the actual card itself is NOT electronic, but a real high quality card you created.
It is printed, stuffed into an envelope with the names printed on the envelope in a classy style, then STAMPED with a REAL USA postage stamp. Then SOC mails it within 24 hours of your creation of the card. SOC is now the largest customer of the US Postal Service.
Send Out Cards has thousands of stock cards to choose from – all categorized for easy search. Don’t like the message? Overwrite it. Don’t want a stock card; create your own with pictures. SOC also has all kinds of creative gadgets (frames, sticky notes, flowers, etc.) to add to your card. Fonts, colors work just like a word document. You can honestly say you made it! It’s fun. You may even upload your signatures.
How much does it cost? At wholesale (larger volume), we’ve been paying $.61 for a stock card. When we add a photo (and you can add up to 9 photos all for $.31 more), we pay $.92. Then the postage is added to the cost of the card. Tri-fold and oversized cards are also available for greater impact.
We have used Send Out Cards for our contact database as well. Every day, the database automatically, pulls up the birthdays, anniversaries, or other events we want to remember for the coming month. You can upload previous databases you have already saved on your computer.
Also, SOC has a great future to cue cards (up to a year) for upcoming birthdays, anniversaries, etc. You can make a card to go to a number of people. They have greeting size cards, postcards, oversized cards, calendars, etc.
Since we’ve been in Ecuador, we’ve taken our photos and made cards showing the beautiful views of Cuenca. We are able to stay in touch with friends and family back in the USA like we always have – but the beauty of it is that the cards are mailed from the USA. So there’s no high cost of sending them from Ecuador or the chance of taking 3 weeks to get there.
Send Out Cards also has gifts you can send along with cards. Send prepaid gift cards, cookies, kids’ treats, seasonal gifts. The price? Less than a card from the store.
Now, you are motivated to send more cards. Quickly act on your promptings to send them out. You don’t have to wait to go to the store, find stamps, etc. – it’s all right there on your account. In about the time of composing an email, a real custom old fashioned card will fly to your loved ones!
For a short video, please go to this link and find out more. We sure think it’s great and we’d like for you to see what it could do for you. And after watching the video, there’s a link for you to send out a free card on us! When you do, you can also upload your favorite picture (use several!) from Cuenca, the USA, or your favorite people. Make your own special card for someone or use a stock card.
We also have samples of these high quality cards. The cards are made with recycled paper and biodegradable ink. Your family or friends will appreciate the card’s quality.
Use the link below for the video and to send one free card. You can choose for Cody Bateman to lead you through the process. It’s the best thing since magicJack!
Gary & Sue
Wednesday, June 6, 2012
Domestic Help
Domestic Help
The reddish font is a warning: it is now a felony to not pay "Social Security" taxes on domestic labor pay. Late last year the law changed and is being enforced. Household help, including maids, must be given benefits required by law.
Like in last year's great movie, "The Help," domestics are entitled to retirement and health insurance benefits provided by the government from payroll taxes. Now, who wants to be on the wrong side of that? Jail time and heavy fines are a possibility.
So, to stay out of trouble, have a labor attorney draw up an employment agreement and pay the modest payroll taxes.
Do not interpret Cuencano friendliness for more than it is.
A friend learned the hard way. The very friendly maid went to a labor attorney after they declined to play the game of "another gringo will pay me twice what you are." That was a shock after months of gringo gifts and generosity. A simple severance agreement was quickly drawn up and half a month's pay was given as severance.
The rule of vesting is that on the 15th visit to work in your home, the maid is considered your employee. This applies even she only works 3 or 4 hours a visit. Even visits for family events or holidays (when no work is done) may be considered a labor visit. And "why didn't you pay me for coming to your birthday party?"
There's a moral to the story then: Have a contract paying a fair wage (not excessive so as to impact other employers), then be generous as you desire, outside the contract.
We are still learning their way of thinking!
The reddish font is a warning: it is now a felony to not pay "Social Security" taxes on domestic labor pay. Late last year the law changed and is being enforced. Household help, including maids, must be given benefits required by law.
Like in last year's great movie, "The Help," domestics are entitled to retirement and health insurance benefits provided by the government from payroll taxes. Now, who wants to be on the wrong side of that? Jail time and heavy fines are a possibility.
So, to stay out of trouble, have a labor attorney draw up an employment agreement and pay the modest payroll taxes.
Do not interpret Cuencano friendliness for more than it is.
A friend learned the hard way. The very friendly maid went to a labor attorney after they declined to play the game of "another gringo will pay me twice what you are." That was a shock after months of gringo gifts and generosity. A simple severance agreement was quickly drawn up and half a month's pay was given as severance.
The rule of vesting is that on the 15th visit to work in your home, the maid is considered your employee. This applies even she only works 3 or 4 hours a visit. Even visits for family events or holidays (when no work is done) may be considered a labor visit. And "why didn't you pay me for coming to your birthday party?"
There's a moral to the story then: Have a contract paying a fair wage (not excessive so as to impact other employers), then be generous as you desire, outside the contract.
We are still learning their way of thinking!
Saturday, June 2, 2012
Missionaries
RETIRING
MISSIONARIES
On Friday, Sue and I wandered below the clouds to the El Maiz restaurant for our Friday lunch date together. Immediately, we encountered two lively, lovely, lady retired missionaries from Midland Texas. Judith and Kay had their first assignment in Quito twenty years ago. Then their ministry took them to India, Indonesia and finally returned to Texas to care for aging family members.
They plan to move to Cuenca in September, so we all enjoyed sharing our pilgrimages and ideas. We introduced them to “South of Zero” and our eBook, Thriving in Ecuador.
Meeting them was a fresh reminder of the challenges in moving to Ecuador. Thanks to the many bloggers who generously share their experiences and lessons for the newcomers.
On Friday, Sue and I wandered below the clouds to the El Maiz restaurant for our Friday lunch date together. Immediately, we encountered two lively, lovely, lady retired missionaries from Midland Texas. Judith and Kay had their first assignment in Quito twenty years ago. Then their ministry took them to India, Indonesia and finally returned to Texas to care for aging family members.
They plan to move to Cuenca in September, so we all enjoyed sharing our pilgrimages and ideas. We introduced them to “South of Zero” and our eBook, Thriving in Ecuador.
Judith, left - Kay, right
On Saturday, they joined us for a snack at our home. They had many questions about Cuenca real estate and culture.
Meeting them was a fresh reminder of the challenges in moving to Ecuador. Thanks to the many bloggers who generously share their experiences and lessons for the newcomers.
What a joy to have a divine encounter during our slow date day!
Sunday, May 27, 2012
BIBLE STUDY
As a young Christian 35 years ago, I felt led to read the entire Bible in a year.
I did not want to miss anything! ( Start with the New Testiment).
I was intrigued and captured by the clear statement in Hebrews, chapter 11:
" ...he who comes to the Lord, must believe that He is and that He is a rewarder of
those who diligently seek Him."
The Bible is the best selling book in history, yet remains a mystery. Sold, rarely read.
Yet, it remains God's love letter to us. Not religion, but relationship!
As Jesus said in John 6: "...the words that I have spoken to you are spirit and are life."
We have enjoyed rich fellowship during the last year as we studied Paul's letters to the
Ephesians, Galations, John's first epistle and Hebrews. We also have monthly meals or outings, when we are all in town.
Come join us on Wednesdays at 2pm, as we hear not only the words, but also the music of life!
Rejoicing,
As a young Christian 35 years ago, I felt led to read the entire Bible in a year.
I did not want to miss anything! ( Start with the New Testiment).
I was intrigued and captured by the clear statement in Hebrews, chapter 11:
" ...he who comes to the Lord, must believe that He is and that He is a rewarder of
those who diligently seek Him."
The Bible is the best selling book in history, yet remains a mystery. Sold, rarely read.
Yet, it remains God's love letter to us. Not religion, but relationship!
As Jesus said in John 6: "...the words that I have spoken to you are spirit and are life."
We have enjoyed rich fellowship during the last year as we studied Paul's letters to the
Ephesians, Galations, John's first epistle and Hebrews. We also have monthly meals or outings, when we are all in town.
Come join us on Wednesdays at 2pm, as we hear not only the words, but also the music of life!
Rejoicing,
Gary & Sue
Monday, May 21, 2012
Foreign Earned Income Exclusion
Foreign Earned Income Exclusion for US taxes
Some of us living out of the US have earned income which must be reported to the IRS. But there is a way to reduce the amount we pay in income taxes. Let's do it.The key is to be out of the US for any 330 days anytime during any twelve month period. IRS Form 2555 is used to compute the exclusion and is filed with our form 1040.
We may exclude the portion representing the time out of US. Earned income usually appears on IRS Schedule C and does not include passive interest, dividends, pensions, etc.
Up to $92,900 may be excluded in 2011. This increases with inflation. Some foreign housing and living expenses may also have favorable tax treatment. Our passport records hold the information on our time out of the US.
Maybe an example will clarify my prose:
Sue and I moved to Equador in November 2010. We made trips home in April and October 2011 for 4 weeks each time. So it appears that we were in the US for eight weeks or 56 days. Oops, that's more than the 35 days allowed. But consider the words "any twelve month period." This is not limited to the calendar year. Or to the April 15 tax deadline - extensions are allowed. We filed for the automatic six month extension.
So here is how our time and exclusion worked out:
Starting the day we returned from our first trip home, April 29, 2011 we added 365 days. We were in the US for 27 days in October and for the last half of April 2012 (another 3 week visit home). That's too many days during twelve months. Try again.
Let's start April 18, 2011 and end the day we left for the US on April 17, 2012 (arriving April 18). Now we have the last 4 days of our April 2011 trip and none of our April 2012 trip, plus 27 days in October in the US. Total days in US = 31.
Ignore my confusing math. The point is we may pick our days to find 330 days out of the US. It turns out we were out of the US for about eight months of calendar 2011, so we exclude 8/12 or 67% of earned income.We were able to slide our twelve month computation into the following tax year, even though it resulted in only eight months during 2011.
Yes, I recommend professional tax advice on these issues. Just remember the magic any 330 days out of the US during any 12 month time frame. Oh, and one minute in the US or flying over it counts as a day!
Now, if I could only find a way out of the payroll (social security) taxes...
Friday, April 13, 2012
Taxes in Ecuador
TAXES in ECUADOR
The Cuenca Chamber of Commerce hosted a seminar on Ecuadoran taxes this week. The law firm of Cordero Moreno & Corral graciously simplified this complicated topic for us Gringos. Their English was also excellent. So here is my attempt to simplify their simplification. Oh yes, please check with your own financial planner and attorney...
Ecuador's tax system is similar to that of the US with required self-reporting and filing of tax returns to SRI (IRS), VAT (think "sales taxes"), property taxes. They also have a 5% expropriation tax on money leaving Ecuador (coming soon to the US) to keep money from leaving the country. Ecuador's inheritance tax takes the form of an income tax paid by the beneficiary.
You may presently carry $10,000 in cash out of the US without reporting it; Ecuador allows only $1,000. Banks may withhold the 5% tax and charge a fee for this "service" on transfers out of Ecuador.
Nearly all income must be reported to the Ecuadoran government on the annual income tax returns due the following March (date based the ninth digit of your cedula). This applies even if you have no tax due! Opps, now we may all have a problema!
Practically speaking, I suspect the government will not waste time auditing gringos with no potential tax liability in order to impose a $40 fine for not reporting.
Most of us will have no income taxes to pay due to the exemptions, deductions and tax rates. Deductions include social security taxes in Ecuador and half of your expenses for food, medical expenses, clothes, housing (rent, mortgage, maintenance only) up to $12,000. Printed facturas (receipts) with your name and cedula number are required. Receipts on thermal paper will self destruct in 90 days as the ink fades. Ask Super Maxi for a receipt on regular paper if you have high income and expect to pay income taxes.
Exemptions from taxation are given on CD's of over year maturity, foreign (US, etc) earned income, and presumably US, Canadian, European social security retirement payments. Taxes start after $9,210 per person income. This amount triples at age 65! So a couple over 65 would have to earn nearly $28,000 each to have income tax due.
Income Tax rates for 2011 started at 10% on over $9,210 in income and increase in brackets to a maximum of 35% on income over $93,890. Estimated taxes are due in July and September. Keep tax records for seven years.
Captial gains on the sale of a house are ten percent. This is reduced by five percent for each year of ownership, so the tax would be half after ten years. Alcabala or transfer tax is 1.2% paid by the buyer on a home purchase.
Suggestions:
* Avoid large transfers of money in the banking system.
* Do not transfer money to Ecuador which you will transfer again to another country
*Be aware that children can not be disinherited. Ecuadoran law protects all children at all ages!
* For small professional earnings you may obtain a "RUC Rise" at SRI and simply pay a few dollars tax at any bank monthly. No reporting requirements! See my previous blog.
Maybe I got most of this right. I welcome your comments!
The Cuenca Chamber of Commerce hosted a seminar on Ecuadoran taxes this week. The law firm of Cordero Moreno & Corral graciously simplified this complicated topic for us Gringos. Their English was also excellent. So here is my attempt to simplify their simplification. Oh yes, please check with your own financial planner and attorney...
Ecuador's tax system is similar to that of the US with required self-reporting and filing of tax returns to SRI (IRS), VAT (think "sales taxes"), property taxes. They also have a 5% expropriation tax on money leaving Ecuador (coming soon to the US) to keep money from leaving the country. Ecuador's inheritance tax takes the form of an income tax paid by the beneficiary.
You may presently carry $10,000 in cash out of the US without reporting it; Ecuador allows only $1,000. Banks may withhold the 5% tax and charge a fee for this "service" on transfers out of Ecuador.
Nearly all income must be reported to the Ecuadoran government on the annual income tax returns due the following March (date based the ninth digit of your cedula). This applies even if you have no tax due! Opps, now we may all have a problema!
Practically speaking, I suspect the government will not waste time auditing gringos with no potential tax liability in order to impose a $40 fine for not reporting.
Most of us will have no income taxes to pay due to the exemptions, deductions and tax rates. Deductions include social security taxes in Ecuador and half of your expenses for food, medical expenses, clothes, housing (rent, mortgage, maintenance only) up to $12,000. Printed facturas (receipts) with your name and cedula number are required. Receipts on thermal paper will self destruct in 90 days as the ink fades. Ask Super Maxi for a receipt on regular paper if you have high income and expect to pay income taxes.
Exemptions from taxation are given on CD's of over year maturity, foreign (US, etc) earned income, and presumably US, Canadian, European social security retirement payments. Taxes start after $9,210 per person income. This amount triples at age 65! So a couple over 65 would have to earn nearly $28,000 each to have income tax due.
Income Tax rates for 2011 started at 10% on over $9,210 in income and increase in brackets to a maximum of 35% on income over $93,890. Estimated taxes are due in July and September. Keep tax records for seven years.
Captial gains on the sale of a house are ten percent. This is reduced by five percent for each year of ownership, so the tax would be half after ten years. Alcabala or transfer tax is 1.2% paid by the buyer on a home purchase.
Suggestions:
* Avoid large transfers of money in the banking system.
* Do not transfer money to Ecuador which you will transfer again to another country
*Be aware that children can not be disinherited. Ecuadoran law protects all children at all ages!
* For small professional earnings you may obtain a "RUC Rise" at SRI and simply pay a few dollars tax at any bank monthly. No reporting requirements! See my previous blog.
Maybe I got most of this right. I welcome your comments!
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