Modification to income tax withholding tax percentages
The provisions contained in the resolution published in the Official Gazette on March 29, 2024 will be applicable as of March 1, 2024.
For one time only, it is established as a deadline for the delivery of the withholding vouchers to be made between March 1 and March 15, 2024, so that taxpayers may adapt their systems and registration mechanisms.
Taxpayers within the RIMPE regime must act as withholding agents in the cases provided for in article 92 paragraph 2 of the Regulations for the Application of the Internal Tax Regime Law (For example: withholdings in relation to dependency, when a purchase liquidation is made or dividends are distributed).
| IR withholding concept | Until March 29, 2024 | As of March 1, 2024 |
| Interest paid to banks and other entities subject to the supervision of the Superintendency of Banks and the Popular and Solidarity Economy. | 0% | No withholding voucher is issued |
| Settlements for the purchase of goods and provision of services to persons deprived of liberty. | 0% | No withholding voucher is issued |
| Acquisitions of goods and services from taxpayers subject to RIMPE-NEGOCIO POPULAR that have issued a physical or pre-printed voucher. | 0.00% | |
| Payments to insurance and reinsurance companies. | 1.75% over 10% of the premium | 1.00% |
| Payments on construction activities of real estate material work, urbanization, land development or similar. | Included are | 1.75% |
| Acquisition of goods of agricultural, poultry, livestock, beekeeping, rabbit, bio-aquatic, forestry and meat origin, which are kept in a natural state from traders. | Included are | 1.75% |
| Professional services rendered by resident companies. | 2.75% | 3.00% |
| Commissions paid to national or foreign companies resident in Ecuador and permanent establishments domiciled in the country. | New percentage | 3.00% |
| Fees and commissions of services in which intellect prevails over labor without relation to the professional title. | 8.00% | 10.00% |
| Those made to notaries for activities inherent to their position. | 8.00% | 10.00% |
| Royalties, royalties, rights or any other payment or credit on account made to individuals and corporations, related to the ownership, use, enjoyment or exploitation of intellectual property rights. | 8.00% | 10.00% |
| Leasing of real estate, whatever its denomination or contractual modality. | 8.00% | 10.00% |
| Fees and other payments made for teaching services. | 8.00% | 10.00% |
