On 4 June 2019, the Ecuadorian Internal Revenue Service (SRI) issued Resolution No. NAC-DGERCGC19-0000022 dated 30 May 2019 concerning refund procedures for overpaid advance income tax in financial year (FY) 2018.
According to the resolution, refund procedure depends on the taxpayer’s effective tax rate (TIE) in comparison to the average TIE, where average TIE rate is set at 1.4% for companies and 1.0% to 4.0% set for specified sectors in 2018. As stated by income tax law, if advance payments exceed the amount of income tax due, a tax refund mechanism is available to recover the excess of income tax advance payments made and the computation of advance payments to be made during fiscal year 2019.
The resolution is effective from the date of its publication.
