I.- Legal news
1.- Organic Law of Economic Efficiency and Employment Generation.
Source: Supplement to the Official Registry. No. 461 – Date: December 20, 2023
The Organic Law of Economic Efficiency and Employment Generation recently published in the Official Registry of Ecuador on December 20, 2023, is a regulation that seeks to promote economic development and employment generation through a series of reforms and legal provisions. This law is organized into two main books, each covering different legal and economic aspects.
Book I focuses on reforms to various legal bodies, mainly in the tax and investment field. It includes changes to the Internal Tax Regime Law, introducing temporary tax residence and adjusting tax exemptions. Modifies the Reformatory Law for Tax Equity of Ecuador, mainly with regard to payments abroad and international credits. In addition, it reforms the Tax Code, introducing facilities for the payment of interest and fines. This book also addresses changes to the Mining Law, adjusting the royalty regime and transfers to decentralized governments. Likewise, reforms are included to the Organic Code of Production, Commerce and Investment, with special emphasis on Free Zones, and to the Organic Decree Law for the Strengthening of the Family Economy, focused on investments and acquisitions of capital goods.
Book II establishes the creation of the regime to attract investments, through public-private partnerships. Outlining a legal framework to promote and facilitate investment in the country. The law establishes the institutional framework, the applicable rules and processes for the participation of the private sector and the popular and solidarity economy in the management of public investment projects related to infrastructure and public services or strategic sectors. The CIAPP is created as an intersectoral collegiate body of the Central Public Administration, in charge of exercising powers related to PPPs.
We invite you to review the full text of this regulation.
Click to read the complete regulations.
2.- Resolution No. NAC-DGERCGC23-00000034. Tax declaration dates for taxpayers subject to the RIMPE entrepreneurial regime, RIMPE popular businesses and special taxpayers.
Source: Official Registry No. 462 – Date: December 21, 2023
Resolution No. NAC-DGERCGC23-00000034 establishes a new regulatory framework for the presentation of tax returns and payments for special taxpayers and RIMPE taxpayers.
Special taxpayers must submit and pay their tax returns (income tax, VAT, withholdings at source, ICE, ISD and the MID annex) until the 11th of the due month, regardless of the ninth digit of their RUC. Exceptions apply for taxpayers under the RIMPE and for those in the Province of Galapagos, who have until the 28th, and State institutions and public companies, until the 20th. If the due date falls on a holiday or day of rest, the transferred to the next business day, unless this implies moving to the next month, in which case it is brought forward to the last business day of the expiration month.
RIMPE taxpayers must declare and pay income tax following a schedule based on the ninth digit of their RUC, according to these criteria:
- RIMPE Entrepreneur – Natural Person taxpayers: Between March 10 and 28.
- RIMPE Entrepreneur – Society taxpayers: Between April 10 and 28.
- RIMPE Taxpayers Popular Business – Natural Person: Between May 10 and 28
The declaration is mandatory even without income or tax credits. If the due date falls on a non-business day, it is moved to the next business day or brought forward to the last business day of the previous month. Non-compliance carries interest and fines. RIMPE taxpayers cannot apply deductions for personal expenses in the settlement of this tax. For those domiciled in Galapagos and for state entities and public companies, there are special deadlines until the 28th and 20th respectively.
Click to read the complete regulations.
II.- New article on our blog
Knowing the most relevant aspects of the Organic Law of Economic Efficiency and Employment Generation.
On December 20, 2023, the Organic Law of Economic Efficiency and Employment Generation (LOEEGE) was promulgated. This legal norm, in an extensive set of articles, addresses reforms to various legal norms, mainly in the tax field, as well as in one of its sections it incorporates the legal regime applicable to Public-Private Associations.
On this occasion, our Law Firm has prepared a summary of this legal rule, hoping that it will be very useful for our readers.
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Contact information:
Abg. Miguel Ángel Saltos | Email: miguel.saltos@lince-saltos.com | Telephone: (+593 4) 2630313
