Category Archives: Bulletin

On March 11, 2024, The Constitutional Court issued the ruling 878-20-JP/24, which analyzes the Maternity Leave in case of death of children, from which we highlight:

• The Court analyzes the scope of maternity leave, with the premise that pregnant women have the right to prioritized protection and care of their integral health during pregnancy, childbirth and postpartum.
• The postpartum or puerperium is the stage in which the body progressively recovers from the physical and psychological changes that have occurred, to return to its pre-pregnancy condition. This varies for each person.
• The Court concludes that it is not appropriate to suspend maternity leave due to the death of the newborn child, based on the argument that the reason for the leave has disappeared ignoring the need for the woman’s recovery.
• It argues that suspending maternity leave on the assumption that its sole purpose is to care for the children, would perpetuate the gender stereotype that assigns to women the role of primary caregiver in the family nucleus. And resolves that every working woman has the right to the full enjoyment of her maternity leave, despite the death of her child.

Through Executive Decree 333 of July 12, 2024, published in the Third Supplement of the Official Registry 600 on July 15, 2024, the Public Procurement Law Regulations (the “Regulations“) were amended.

The key amendments are summarized below:

1. The contracting of Ecuador’s tourism promotion is included as a special regime. Under this regime, the following may be contracted: (i) supply and demand studies; (ii) advertising; (iii) organization, logistics, and assistance for events and fairs; (iv) creation of tourism promotion campaigns; and (v) promotion and positioning of the country brand (Marca País).
2. A legal entity with its main office in the canton, province, or region where the contract will be executed is considered a local supplier.
3. If the contractor is an obligated subject before the Financial and Economic Analysis Unit (UAFE), it must hold a Certificate of Compliance from the UAFE during the contractual execution phase.
4. The study of technological disaggregation in works applies only when the reference budget is equal to or exceeds the amount resulting from multiplying the coefficient 0.00003 by the State’s initial budget for the corresponding fiscal year. For 2024, such amount is US$998,904.59.
5. Public entities may acquire domestic and international airline tickets under any of the following mechanisms:
6. Direct purchase from airlines.
7. Direct purchase from airlines using business or corporate plans.
8. Direct purchase through online ticket platforms.

Through travel agencies, if deemed appropriate for technical and operational reasons.

The Executive Decree 313 issued June 27, 2024, by the President of the Republic of Ecuador regulates the Unique Income Tax for Sports Betting Operators. Below are the key points summarized:

1. Assessment and payment of the tax: Taxpayers parties must declare and pay the tax monthly. Sports operators with tax residence in Ecuador must file an annual tax form consolidating the amounts declared monthly.
2. Taxable Base: It is equal to the total income generated, including commissions, minus total paid prizes, provided that 15% tax was withheld from these prizes at the time of payment.
3. Tax Rate: A flat rate of 15% applies to the taxable base.
4. Withholding: Prizes paid by resident and non-resident operators are subject to a 15% withholding. The prize is the amount the player is entitled to when their prediction is correct, excluding the accrued forecast, i.e., the amount wagered by the player.
5. Receipts: Resident or non-resident operators must issue sales receipts. One sales receipt per player per sporting event may be issued. Regarding withholding, one withholding receipt may be issued for all prizes awarded to the same player during the month.
6. Implementation Period: Operators have 6 months to adjust their systems and implement the necessary mechanisms to comply with the applicable formal obligations.
7. Non-resident Operators: Non-resident operators must obtain their Unique Taxpayer Registry (RUC). Obtaining a tax ID in Ecuador does not imply that operators have a permanent establishment in the country. However, the Ecuadorian representative must retain supporting information for 7 years.