In Ecuador from August 23, 2018 when the Resolution of the Internal Revenue Service (SRI)No. NAC-DGERCGC18-00000395 was published for the application of the remission published in the supplement of the Official Registry No. 311, taxpayers have the option of availing themselves of the remission of interest, fines and surcharges they have with the tax authority, but with the condition that the taxpayer cancels one hundred percent of the principal amount owed until December 28, 2018 or that establishes a payment mechanism of up to two years.
The debts for Income Tax of 2017 that are canceled until April 2018, or tax obligations due after April 2, 2018, will not be eligible for remission.
The tax obligations included in this law of remission are:
Original or substitute tax declarations
Debts in process of collection
There are two groups of remission beneficiaries:
Group 1: Beneficiaries that would pay one hundred percent of the principal debto Companies: Whose average gross income over the last three years is greater than USD 5 million.o Members of Economic Groupso Passive Subjects: That they maintain taxes withheld, received and pending payment on April 2, 2018.
Group 2: They can be micro, small and medium taxpayers who are not in group 1 and who are looking for a financing of the principal debt. They will be able to pay their debt up to two years in equal and monthly installments that must begin the month following the acceptance of the financing, for which the taxpayer must accept that bank debits are made.
Taxpayers have the option of availing themselves of the remission of interest, fines and surcharges they have with the tax authority, but with the condition that the taxpayer cancels one hundred percent of the principal amount owed until December 28, 2018
If you have any doubts about this or any other legal, labor, tax or accounting aspects, please contact us.
Taxpayers have up to 90 days to submit the request for payment of all or payment facilities, until November 23, date in which you can even make the payment of the principal debt.
When the taxpayer makes their declarations, they must include the amount of interest and fines generated by the canceled obligation, and the Internal Revenue Service will make the corresponding remission.
It is important to emphasize that those who accept this tax rebate of 2018, will not be able to benefit from future referral processes for 10 years.