Organic Law for Financial Relief and Economic Strengthening of Generations in Ecuador was published in Official Gazette No. 699, Fifth Supplement, on December 9, 2024.
Below is a summary of the most relevant provisions:
- Tax credit for employers:
Employers who did not terminate their workers during October, November, and December 2024 and who maintain them under the same or better working conditions may claim a percentage of the employer’s contribution to social security paid during this quarter as a tax credit for 2024 income tax. The percentage will be calculated according to the following chart:
| Type of institution | Benefit |
| Large companies with gross income in 2023 higher than in 2022.
Medium-sized banks with gross income higher from October 2023 to October 2024. |
5% |
| Large companies with gross income in 2023 similar to 2022.
Medium-sized banks with lower gross income from October 2023 to October 2024. |
10% |
| Large companies with gross income in 2023 lower than in 2022.
Small banks with higher gross income from October 2023 to October 2024 |
15% |
| Medium-sized companies with gross income in 2023 higher than in 2022.
Small banks with lower gross income from October 2023 to October 2024 |
20% |
| Medium-sized companies with gross income in 2023 similar to 2022
All other financial institutions. |
25% |
| Medium-sized companies with gross income in 2023 lower than in 2022 | 30% |
| Small and microenterprises with gross income in 2023 higher than in 2022 | 35% |
| Small and microenterprises with gross income in 2023 similar to 2022 | 40% |
| Small and microenterprises with gross income in 2023 lower than in 2022 | 45% |
Large banks are not eligible for this benefit. The credit amount cannot exceed the tax liability for the 2024 fiscal year.
- Exceptional payment plan:
The Internal Revenue Service (SRI) may accept payment plans of up to 12 installments for withheld or collected taxes outstanding as of October 31, 2024. Applications must be submitted by February 7, 2025.
- Extinction of Tax Obligations:
The SRI Director General and, optionally, sectional tax administrations will declare extinguished any tax obligations with a total value (including tax, interest, and penalties) that does not exceed $460 per taxpayer. This applies if the obligation has been outstanding for at least one year and the tax administration has initiated collection proceedings.
- Income Tax Waiver:
Income tax payments for the 2022 and 2023 fiscal years are waived for taxpayers under the RIMPE-Popular Business Regime.
- Income from occasional property sale:
Income from the occasional sale of real estate by individuals or entities will be considered exempt from income tax, provided it does not exceed two property sales per year.
- Social security:
- The Ecuadorian Institute of Social Security (IESS) will not initiate collection proceedings until February 28, 2025. Ongoing processes will also be suspended until that date.
- Social security contributions corresponding to November and December 2024 will not generate employer liability if paid within 90 days of becoming overdue and upon the employer’s request.
- Public procurement:
Public sector contracting entities may grant exceptional extensions to contractual deadlines for the delivery of goods or services, provided the contracts were signed during the period of the electricity crisis.
Andrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144