Impact of direct and indirect taxes on SMEs in the city of Cuenca 2016-2018 period

Abstract

Small and medium-sized companies in the Ecuador, is the engine of the economy, through the development of activities generates employment, they contribute with the payment of direct and indirect taxes, one of the problems that affects this group is the lack of training in tax matters, as well as ignorance of tax measures and incentives for the facilities and creation or expansion of small and medium-sized companies. The research aims to develop tax strategies to optimize the income tax of small and medium-sized companies in the city of Cuenca, according to the commercial sector to which they belong, the mixed methodology was used with emphasis on the qualitative method that allowed obtaining information On the other hand, for the analysis, on the other hand, a survey was applied to city professionals to find out the type of activity carried out. The results indicate a large participation of small and medium-sized companies in the economy of the region, however, their results economic are affected by tax taxes, on average they have a tax payment in a range of $ 501 to $ 2000 dollars, income tax has greater weight, when analyzing liquidity it was determined that in 2016 it was $ 1.70, increasing for 2017 to $ 2.07, for 2018 it decreased to $ 1.61 which means that companies have problems with cash availability, it was proposed one tax strategies to optimize the payment of income tax, the same that is the most representative of direct and indirect taxes.