The Internal revenue service (SRI) has issued “Resolution No. NAC-DGERCGC24-00000020” in the Ecuadorian Official Gazette on 28 May, 2024, which outlines details of the transfer pricing annex concerning related party transactions and the comprehensive transfer pricing report.
The resolution amends “Resolution NAC-DGERCGC15-00000455”. It sets the submission deadline for transfer pricing reports, and annexes corresponding to the 2023 financial year, to September, 2024. The submission period is in two months of the income tax return deadline.
The resolution also introduces new penalties for failing to submit the transfer pricing report or annex, with varying penalties based on whether the taxpayer is a large taxpayer, a special taxpayer, or another taxpayer subject to transfer pricing rules.
Penalties for failing to submit the transfer pricing report for large taxpayers is set at USD 15,000; USD 7,500 for special taxpayers; and USD 3,750 for others.
Penalties for failing to submit the transfer pricing addition for large taxpayers is USD 10,000; USD 5,000 for special taxpayers; and USD 2,500 for others.
Submitting an incomplete, inaccurate, or erroneous transfer pricing report or annex – voluntarily settled without prior notification by SRI – will result in fines of USD 11,250 for large taxpayers; USD 5,625 for special taxpayers; and USD 2,812 for other taxpayers.
Submitting an incomplete, inaccurate, or erroneous transfer pricing report or annex – settled after receiving notification by SRI – will result in fines of USD 15,000 for large taxpayers; USD 7,500 for special taxpayers; and USD 3,750 for others.
Penalties for late submission of the transfer pricing report or annex – voluntarily settled without prior notification by SRI – is set at USD 750 for large taxpayers; USD 375 for special taxpayers; and USD 187 for others.
Penalties for late submission of the transfer pricing report or annex – settled after receiving notification by SRI – is set at USD 1,000 large taxpayers; USD 500 for special taxpayers; and USD 250 for others.
