THE ADVANCE OF INCOME TAX AS A DETERMINANT FOR THE ECONOMIC DEVELOPMENT OF SMALL COMPUTER COMPANIES

Abstract

Introduction: the payment of income tax constitutes an obligation of all companies with legal personality; however, the established payment method can curb the economic development of the small computer trading companies of the Chimborazo province. Objective: to determine the influence of the advance of the income tax on the economic development of the small computer trading companies in the province of Chimborazo in the period between 2013 and 2015. Methodology: a descriptive and cross-sectional study was carried out. A survey was used on the managers of the 15 companies included in the investigation. The financial statements of the companies investigated during the fiscal years from 2013 to 2015 were analyzed. Results: the most significant results show, as significant data, the impact that the payment of the advance to the income tax causes both in profitability and in the liquidity of these companies. In addition, the almost unanimous criteria of the managers of the companies that express their opinion on how the tax affects the economic development of the companies they manage, as well as the need to make substantial changes in the form of payment of the advance payment of the tax to the rent. Conclusions: the current form of payment of the advance of the income tax negatively influences the economic development of the small computer trading companies of the Chimborazo province, since they affect both their profitability and liquidity