Ecuador updates income tax withholding rates from 0% to 10%, introduces a 3% residual rate, and sets rules for non-resident payments. The Tax Authority also publishes a new Code of Ethics to strengthen integrity and anti-corruption.
Ecuador’s Tax Authority (Servicio de Rentas Internas) has issued Resolution No.NAC-DGERCGC26-00000009, updating the country’s income tax withholding framework. The Resolution, effective from 1 March 2026, replaces the previous rules under Resolution No. NAC-DGERCGC24-00000008 and consolidates withholding rates for payments and credits made by withholding agents.
Withholding rates now range from 0% to 10%, depending on the type of income, the legal status of the recipient, and the economic substance of the transaction. Reduced rates (0%, 1%, 1.75%) apply mainly to financial transactions and primary sector activities such as agriculture. Intermediate rates (2%, 3%) cover electricity, insurance, construction, financial income, and services where labour dominates, while the highest rate (10%) applies to professional services, intellectual property royalties, image rights, and leases.
The Resolution introduces a residual 3% withholding for payments not specifically categorised, reducing ambiguity. Payments to non-residents are subject to withholding at the corporate income tax rate unless a double taxation treaty is properly documented. Transitional provisions allow withholding certificates for transactions between 1 and 15 March 2026 to be issued until 31 March 2026, helping taxpayers adjust to the new rules.
In addition, the Tax Authority has published a new Code of Ethics for public servants, emphasising honesty, transparency, and integrity in managing public funds. The update supports anti-corruption measures and institutional modernisation while linking ethical standards to the effective administration of withholding tax obligations.
Earlier, on 29 February 2024, the Ecuadorian Official Gazette released Resolution No. NAC-DGERCGC24-00000008, which sets forth withholding percentages for taxpayers to apply at the source.
