On 4 September 2020, the Director General of Internal Income Service published Resolution No. NAC-DGERCGC20-00000054 of 4 September 2020, providing procedures of how to collect an exceptional advance income tax payment pursuant to Executive Decree No. 1137 of 3 September 2020. Previously, a Resolution published on 4 August 2020 regarding the advance income tax payment under Executive Decree No. 1109, was found unauthorized. The obligation for the exceptional advance payment under the new resolution applies for both individuals and companies, including branches and permanent establishments of non-residents in Ecuador if deriving income subject to income tax, or gross income of at least USD 5 million in the tax return for 2019, or excluding natural persons and employment income, obtained accounting profit during the period January to July 2020. Declarations for the advance income tax payment are due by 11 September 2020 using Form 115 filed through the tax authority website.
This special payment does not apply to:
- taxpayers who are considered as micro, small, or medium-sized enterprises in 2019.
- taxpayers whose total income is exempt from tax with respect to the 2020 fiscal year in accordance with the law.
- taxpayers whose economic activity corresponds to the operation of airlines, tourism sectors; the agricultural sector; exporting; and the aquaculture sector and so on.
