Ecuador’s National Assembly approved amendments to the Organic Tax Code that introduced new deadlines for administrative tax reviews, clarified tax collection procedures and strengthened taxpayer safeguards. The reform secured 83 votes and was submitted to the president for ratification.
Ecuador’s National Assembly approved an Organic Reform Law to amend the Organic Tax Code on 6 October 2026. The reform aims to address inconsistencies in the existing tax framework, improve legal certainty and clarify procedural requirements governing tax authorities and taxpayers.
The legislation also grants the Tax Code organic-law status, giving it precedence over ordinary laws.
Relevant changes
Administrative review appeals
The reform establishes a 180-day deadline for the Tax Administration to resolve Recurso de Revisión appeals, an exceptional administrative procedure that allows tax authorities to reconsider final administrative decisions affected by factual or legal errors.
If the Tax Administration does not issue a reasoned decision within the prescribed period, the appeal will be deemed rejected.
The amendments also narrow the grounds for filing a review, including identifiable errors in case records and new evidence that could not have been obtained during earlier proceedings. The filing period for review appeals will be reduced from three years to one year after the issuance of the decision being challenged.
Transitional provisions address pending cases for which no statutory deadline previously existed.
Administrative claims and tax collection
The amendments clarify deadlines and suspension rules for resolving administrative tax claims, particularly where additional documents are submitted or a complementary tax determination is initiated.
The reform also establishes clearer procedural requirements for tax collection enforcement. Precautionary measures may be suspended when taxpayers request such action, subject to the applicable rules.
Where an administrative review or appeal determines that amounts are payable in a taxpayer’s favour, the refund must be ordered within the same administrative decision.
These provisions aim to improve the predictability of administrative proceedings and clarify tax authorities’ obligations when resolving disputes.
Penalties and taxpayer safeguards
The legislation replaces fixed monetary penalties with fines linked to Ecuador’s Unified Basic Salary, allowing penalties to adjust as the benchmark changes.
It also reinforces the principle of legality by requiring tax authorities to prioritise notification channels expressly designated by taxpayers during administrative proceedings.
Tax obligations and taxpayer rights must be established through laws, regulations and duly published binding resolutions. Non-regulatory documents cannot be used to create or modify tax obligations.
The reform further clarifies that circulars bind the tax administration that issues them but do not bind taxpayers.
Background
The reform proposal was submitted to the National Assembly on 11 June 2019 by Assemblyman Franco Romero Loayza and supporting legislators.
The proposal addressed concerns following a 2016 legislative change that removed the previous 90-day deadline for resolving review petitions. The absence of a statutory timeframe raised concerns about prolonged administrative inaction and legal uncertainty for taxpayers.
The approved amendments seek to establish clearer procedures for administrative tax reviews, tax collection and dispute resolution. The legislation will proceed through the applicable legislative process following presidential ratification and the required publication formalities.
