Servicio de Rentas Internas (SRI) published on its website Resolution No. 536, which establishes the conditions, deadlines and exceptions to inform the corporate composition and approve the “Attachment of Shareholders, Shareholders, Partners, Directory Members And Administrators “and their content. The Resolution establishes in the main:
Term: The Resolution will come into force on February 1st, 2017
Obligations to present in the annex: Companies as defined by the Internal Tax Regime Law, branches of foreign companies resident in the country and permanent establishments of foreign non-resident companies.
Level of corporate composition: The first level is considered to be the direct relationship of the oblige with its holders or beneficiaries of rights representing capital.
Levels of corporate composition to report: In general, only the first level of the corporate composition should be reported. However, when the holders or beneficiaries of capital rights, the board members or the administrators of the oblige, are non-resident companies without permanent establishment in Ecuador, the information indicated by each level must be reported until reaching the last level.
Information to be reported: 100% of the holders or beneficiaries of representative rights of capital, board members and administrators must be informed.
Special cases: Information will also be reported in the following cases:
The obligated subject is a non-profit private institution.
The obligor is an investment or complementary fund.
The oblige is a trust.
Information related to companies that list their shares on stock exchanges: It must report on all shareholders who directly or indirectly own two percent (2%) or more of their corporate composition.
Lack of presentation:
Failure to submit the annex prior to your income tax return shall apply the rate of 25% of the total taxable amount.
Incomplete information, the 25% rate will apply to the part of the tax base that corresponds to the unreported participation; On the rest will apply the general normal rate.
When 50% or more of its corporate composition is not reported, it will apply the 25% rate to the entire taxable base.
Form and term of presentation: The information will be presented, with a cut to December 31 of the fiscal year to be reported, in the month of February.
Source: Pérez Bustamante&Ponce; SMS Auditores del Ecuador