Through Resolution No. NAC-DGERCGC24-00000033, the Internal Revenue Service established the conditions for submitting the Beneficial Owners and Corporate Structure Report (REBEFICS). This report replaces the Shareholders Annex (APS Annex). Below is a summary of the key points:
- Obligated entities
The entities required to submit the REBEFICS Report are:
- Entities detailed in Article 98 of the Internal Tax Regime Law.
- Branches of foreign entities with residence in Ecuador.
- Permanent establishments of non-resident foreign companies.
- Trusts or similar entities established abroad, when the trustee, administrator, settlor, or beneficiaries are tax residents in Ecuador.
- Corporate Structure Report
Obligated entities must report each level of its corporate structure until reaching the individuals who are the beneficial owners.
If the direct or indirect shareholder of the obligated entity is a non-tax resident company in Ecuador, that company will be considered the final level to report, provided that individuals at the end of the ownership structure hold—individually or together with their related parties—less than 10% of the obligated entity’s capital.
However, if at the end of the ownership structure there are individuals who are tax residents in Ecuador, those individuals must be reported, regardless of their percentage of participation in the obligated entity.
- Special Cases
When the obligated party is a private non-profit institution, it must report information on its board members, administrators, participants, founding partners and individuals with decision-making or control.
When the obligated party is an investment fund, it must report information on the fund administrator, individuals with decision-making or control, and participants whose accumulated contributions exceed 5 basic exempt fractions.
When the obligated party is a trust, it must report information about its participants, board members, founders or settlers, beneficiaries or trustees.
If the obligated entity lists its shares on stock exchanges in Ecuador, it must report any shareholder who directly or indirectly holds 2% or more of its corporate composition.
If the obligated entity has as a shareholder—directly or indirectly—a company listed on recognized foreign stock markets, it must report the portion of capital that is not publicly traded or is reserved for a limited group of investors, for any shareholder who directly or indirectly holds 2% of the capital. However, if these shareholders are tax residents in Ecuador, they must be reported regardless of their percentage of participation.
- Information to Report
For companies and individuals at each level of the corporate structure, the following information must be reported:
- Individual name or company name.
- Tax identification number or individual identification number.
- Type of entity or legal structure.
- Country of tax residence.
- Tax regime: general, preferential tax jurisdiction, tax haven, or low-tax jurisdiction.
- Percentage of participation.
- In the case of entities, the administrators and board members, and whether the companies or such individuals are related parties to the obligated entity.
Additionally, the obligated entity must report the following information about its beneficial owners:
- Type and identification number.
- Names and surnames.
- Nationality and country of tax residence.
- Date of birth.
- Residential address.
- Criteria for determining ultimate beneficial ownership.
- Percentage of effective participation.
- Filing Deadlines
The information must be submitted in February of each fiscal year, according to the ninth digit of the obligated entity’s tax identification number (RUC).
If the obligated entity experiences changes in its corporate structure or in the information regarding its beneficial owners, the report must be submitted by the 28th of the second month following the change.
Xavier Rosales, Partner at CorralRosales
