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Entérate de las últimas noticias legales en Ecuador explicadas por nuestros expertos.




On February 29, 2024, the IRS, through Resolution No. NAC-DGERCGC24-00000008, revised the withholding percentages for Income Tax at the source.


Here’s what you need to know:


  1. The withholding percentages are as follows:






–          Interests paid to banks and other entities supervised by the Superintendence of Banks and Popular and Solidarity Economy.

–          Settlements for the purchase of goods and services from activities carried out by individuals deprived of liberty participating in labor reintegration programs.

–          Acquisitions from RIMPE taxpayers engaged in popular businesses, provided that a preprinted sales receipt has been issued.


–          Interests, commissions, and returns on credit transactions between banks and similar entities.

–          Passenger and cargo transportation services.

–          Electric energy.

–          Acquisition of goods of agricultural, poultry, livestock, etc., origin directly from the producer.

–          Purchases of goods and services from RIMPE entrepreneurs.

–          Payments or credits made to insurance and reinsurance companies.


–          Acquisition of all types of tangible movable property.

–          Payments made for construction, urbanization, subdivision, or similar activities.

–          Acquisition of goods of agricultural, poultry, livestock, etc., origin from commercial traders.


–          Services provided by individuals where manual labor prevails over intellect.

–          Those conducted by credit card issuing companies to their affiliated establishments.

–          Activities carried out by financial institutions for transactions with debit cards.

–          Revenues from interests, discounts, and any other type of returns.

–          Interests recognized by any public sector entity in favor of taxpayers.

–          Settlements for the purchase of goods and services from individuals not obligated to keep accounts, not registered in the RUC, or in a suspended state.

–          Receipt of non-returnable PET plastic bottles.

–          Acquisition of mineral substances.

–          Payments or credits to leasing companies.

–          Interests and commissions for credit sales.


–          Payments to media outlets and advertising agencies.

–          Payments or credits to accounts not covered by specific withholding percentages.


–          Professional services provided by resident companies that require the involvement of accredited professionals with a degree.

–          Commissions paid to companies, whether domestic or foreign, residing in Ecuador.


–          Payments made to athletes, coaches, and referees not in an employment relationship.

–          Activities carried out by national or foreign artists residing in the country.


–          Fees, commissions, and other payments made to individuals providing services where intellect prevails, with or without a professional title.

–          Fees, commissions, royalties, and other payments to individuals and companies for activities related to the use or exploitation of their image or reputation.

–          Professional fees for teaching services.

–          Payments made to notaries.

–          Rents, royalties, rights, or similar payments related to the ownership, use, enjoyment, or exploitation of intellectual property rights.

–          Profits obtained from the sale of rights representing capital, etc., traded on the stock exchange of Ecuador.

–          Lease of real estate.

25% or 37%

–          Payments to non-residents for occasional services.

–          Payments abroad.

Exceptions. – Source withholding for Income Tax will not be applied for the following concepts:

–          Payments that constitute exempt income for the recipient.

–          Income under an employment relationship.

–          Payments made between companies considered as payment aggregators or online markets.

–          Payments for the purchase of fuel.


  1. Plurality of Percentages. – In the event that a taxpayer sells goods or services and the respective values are not separated, the highest withholding percentage will be applied.


  1. Payments through Intermediaries – When an individual acts as an agent, representative, intermediary, or proxy for a third party, they will carry out withholdings on behalf of the third party.


  1. For the issuance of invoices for the export of goods, the transmission to the IRS will be carried out from the date of the Customs Export Declaration until 60 days thereafter.


  1. Due to force majeure or unforeseen circumstances, taxpayers unable to issue electronic invoices may do so under the pre-printed scheme, provided that these do not exceed 1% of the total invoices issued in the previous year.


  1. No informational withholding receipt will be issued for operations subject to a 0% withholding rate or exempt from income tax withholding, except in the following cases:

    1. Payments abroad subject to a 0% withholding rate or exempt from income tax withholding, except for imports of goods.

    2. In the distribution of dividends.

    3. When the sales receipt is preprinted.

  1. To allow taxpayers to adapt their systems for the transmission of income tax source withholding receipts that must be carried out between March 1 and March 15, 2024, they may do so until March 30, 2024.


© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.