Acquisition of pharmaceuticals and strategic health goods

Boletín de CorralRosales sobre fármacos y bienes estratégicos de salud - Foto de medicamentos, laboratorio

Through Executive Decree No. 337 issued on January 27, 2022, published in the Official Register (Fourth Supplement) No. 630 of February 1st, 2022, the Law of the National Public Procurement System Regulations (hereinafter the “Regulation”) were amended replacing the Section related to the “ACQUISITION OF PHARMACEUTICALS AND STRATEGIC HEALTH GOODS”. The purpose of this reform is to achieve greater controls, have adequate planning, guarantee the quality of public expenditure, and avoid shortages of health units that are part of the Integral Public Health Network (IPHN).
The main aspects of this reform are:

1.    In order to select and incorporate the supplier of pharmaceuticals or strategic health goods (hereinafter the “Supplier”) in the electronic catalog of the public procurement portal (hereinafter the “Portal”), the corporate reverse auction procedure will be used.

2.    The entities of the IPHN, together with SERCOP, will select the Supplier that will be included in the Portal. The purchase orders will be generated in the Portal for the acquisition of the health goods they require on an independent and periodical manner.

3.    Once the selection procedure is completed, SERCOP will award the selected suppliers, with whom it will enter into a framework agreement that gives the supplier the right and obligation to be included in the Portal’s electronic catalog. If the framework agreement is not signed, the selected supplier will be declared as a failed awardee.

4.    Once the Supplier is enabled in the Portal, the entities will be able to make direct public purchases by generating the corresponding purchase orders.

5.    For the acquisition of pharmaceuticals, it will be necessary that such goods are included in the current National Plan for Basic Medicines, or their acquisition must be authorized according with the provisions issued by the National Health Authority.

6.    Procedures for the acquisition of pharmaceuticals and strategic health goods:

6.1.    Electronic Catalog: IPHN contracting entities will acquire pharmaceuticals and strategic health goods through this procedure.

6.2.    Exceptionally and in accordance with the provisions of the Regulation, acquisitions may be done through the following procedures:

6.2.1.    Institutional Reverse Auction, as long as the pharmaceuticals or strategic health goods are not available in the electronic catalog under centralized acquisition models.

6.2.2.    Single Supplier of Pharmaceuticals when the manufacturer or supplier is unique in the market and provided that it is not available in the electronic catalog. This will be verified through a market study.

6.2.3.    Acquisition through international organizations or agreements as long as their acquisition optimizes public procurement, guaranteeing the quality, safety and efficacy of pharmaceuticals and strategic health goods to be acquired.

6.2.4.    Direct import when special medications are required for specialized treatments that are not included in the Portal’s electronic catalog.

6.2.5.    For the cases foreseen above, if there are no established procedures for the acquisition, it will proceed in accordance with the legal regulations of the country in which the pharmaceuticals or strategic health goods are contracted, or the commercial practices or business models of international application; or, failing that, respective procedural agreements will be previously subscribed under centralized procurement models.

7.    IPHN procuring entities should perform adequate planning processes for the acquisitions.

8.    Acquisitions will be subject to quality, safety, efficacy, technical data sheets, random post-registration controls, in the places of manufacture, storage, transportation, distribution and traceability. The traceability system will consist of the individual and unequivocal identification of each unit of pharmaceuticals or strategic health goods to be delivered, which will allow monitoring throughout the entire distribution chain.

9.    In order to carry out selection procedures for corporate purchase, an Inter-institutional Committee will be formed composed of the highest authorities or delegates of the SERCOP, Ministry of Public Health, IESS, ISSFA and ISSPN.

10.    All entities, public or private, that participate in the execution of the Decree must ensure the protection and confidentiality of patient data.

11.    When the Supplier does not comply with the purchase orders for pharmaceuticals and strategic health goods generated in the electronic catalog tool by the IPHN entities, the values derived from the execution of the guarantees will be deposited in the SERCOP account to be distributed among the health subsystems of the IPHN.

12.    All medical devices, supplies or goods that currently appear in the catalogs of standardized goods and services, and that could be declared strategic health goods, must maintain this category until the termination of the respective framework agreements.

13.    Until the SERCOP signs the framework agreements with the Suppliers for the acquisition of medicines and strategic health goods whose reference budget does not exceed the coefficient of 0.0000002 of the initial State budget (US$7,099.68), the contracting entities of the IPHN may carry out low value procedures if it is not possible to use any of the procedures established in the Law of the National Public Procurement System on a timely manner. 

14.    Until SERCOP, together with the Interinstitutional Committee, carries out the process of cataloguing medicines and strategic health goods, the IPHN contracting entities may acquire them through the exceptional processes established in the Regulation through centralized or decentralized acquisitions, guaranteeing the supply of these products.

Ricardo Mancheno - Foto en blanco y negro

Specialist in Government Procurement
Ricardo Mancheno, partner at CorralRosales
rmancheno@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Compliance plan regarding the implementation of the Data Protection law in controlled entities

Imagen para boletín legal de CorralRosales, firma de abogados de Ecuador. Aparece una imagen oscura con destellos más claros

Through resolution SB-2021-2126 subscribed on December 2, 2021, and published on the Official Gazette 604 of December 23, 2021, the Superintendence of Banks (hereinafter the “Superintendence”) reformed the “Regulations on managing operating risk” (hereinafter the “Regulations”) applicable to “banks, financial service entities and ancillary service entities.”

This reform updated the Regulations to consider the risks arising from the entry into force of the Data Protection Law on May 26, 2021.

Article 23 of the Regulations establishes that controlled entities must “(…) generate plans and programs that allow them to comply with provisions of the Data Protection Law.”

It is relevant to note that in the first transitory provision of the Regulations, the Superintendence states that “(…) it is the controlled entities responsibility to present to the Superintendence of Banks, until March 31, 2022, a compliance plan in relation to all obligations recognized on the Data Protection Law.”

Rafael Serrano, asociado de CorralRosales, con traje y corbata. En el fondo, una parte de Guayaquil (Ecuador)

Specialist in Data Protection
Rafael Serrano, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

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Regime for regularization assets located abroad

Manos con las uñas pintadas de rosa haciendo uno de una calculadora. Pieza para un boletín tributario de CorralRosales: aparece el logo de CorralRosales también en la pieza gráfica
The Law for Economic Development and Fiscal Sustainability After the Pandemic COVID-19, enacted in the Official Gazette 587, Third Supplement, on November 29, 2021, amended the Tax Code and, among others, the Internal Tax Regime Law. Regulating 

On December 29, the President of the Republic issued the corresponding regulations. CorralRosales will summarize the most important changes introduced by the indicated regulations in several bulletins. The following analyzes the main elements of the Regime for Regularization of Assets Located Abroad (hereinafter the “Regime”). 

1.    Who can benefit from the Regime?

Tax residents in Ecuador who as of December 31, 2020, meet the following conditions are eligible for the Regime:
  • The taxpayers have maintained assets abroad such as money, real estate, shares, etc. derived from income that should have been subject to income tax in 2020 or before, but such tax has not been paid, provided that:
  • The Tax Authority has not initiated an assessment procedure and the assessment is not final,
  • The assets are not subject to judicial litigation,
  • The assets are not located in countries classified as high risk or non-cooperative by the Financial Action Task Force (FATF), and
  • The money is in a financial institution.
  • The taxpayer has carried out transactions subject to Outflow Tax (ISD) and have not paid such tax, provided that conditions (i) and (ii) above are met.

2.    Who are not eligible for the Regime?

The following are not eligible for the Regime:
  • Individuals who, as of November 29, 2021, have an enforceable conviction for crimes against the development regime, crimes against the efficiency of the public administration, customs, or economic crimes, and
  • Individuals who have been public officials at any time since 2015, their spouses, domestic partners or family members up to the second degree of consanguinity and second degree of affinity, and entities in which these officials have or have had a participation of more than 10%.

3.    What are the requirements to be eligible for the Regime?

Taxpayers may apply for this Regime until December 31, 2022, for such purpose they must comply with the following requirements:  
  • Taxpayers must submit a reserved sworn statement in which they state the following:
  • That as of December 31, 2020, they did not maintain any other assets and did not carry out other operations that should have been subject to tax, which comply with the conditions to benefit from the Regime.
  • The taxable income that was not taxed in Ecuador, detailed for each fiscal year to which the Regime will be applied.
  • For each asset, the date and value of acquisition, the commercial value as of December 31, 2020, the place where they are located and, in case of money, the financial entity where it is deposited.
  • The amount of the operations that should have been subject to the pay outflow tax (ISD), the date of the taxable event and its description.

The valuation of the assets shall be made at commercial value. The sworn statement must include the supporting documentation of the value of the assets.
  • b.    Declare and pay the Temporary Tax for the Regularization of Assets Abroad. The taxpayer may request payment facilities.
  • c.    Submit the patrimonial statement including the regularized assets until December 31, 2022.


4.    How is the tax to be paid for the regime calculated?

The taxable base is equal to the sum of:
  • a.    The values of the assets included in the sworn declaration; and,
  • b.    The value of the operations that were not subject to the payment of outflow tax (ISD) included in the sworn statement.
The applicable tax rate will be established according to the following:
    


5.    What are the effects derived from applying the Regime?
  • Taxpayers will not be subject to assessment process regarding income tax for the fiscal years 2020 and prior years, and outflow tax (ISD) for operations occurring up to December 31, 2020.
  • The taxpayers will not be subject to legal or administrative sanctions derived from the noncompliance of the formal duties related to the above taxes.
  • Criminal proceedings will not be initiated regarding crimes of unjustified private enrichment, tax fraud or customs fraud.

Andrea Moya - CorralRosales - Lawyer Ecuador

Specialist in Tax
Andrea Moya, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Income tax withholding to workers

Manos con las uñas pintadas de rosa haciendo uno de una calculadora. Pieza para un boletín tributario de CorralRosales: aparece el logo de CorralRosales también en la pieza gráfica

The Law for Economic Development and Fiscal Sustainability After the Pandemic COVID-19, enacted in the Official Gazette 587, Third Supplement, on November 29, 2021, amended the Tax Code and, among others, the Internal Tax Regime Law.
 
On December 29, the President of the Republic issued the corresponding regulations. CorralRosales will summarize the most important changes introduced by the indicated regulations in several bulletins. The following analyzes the main elements to be considered for calculating the income tax withholding to workers.
 
Employers must withhold income tax from their employees on a monthly basis. For this purpose, they must follow the following procedure:

  1. The taxable income of the employee for the fiscal year must be projected.
  2. From such value, the amount of the contribution to the Social Security Authority must be deducted.
  3. The amount obtained will be the income taxable base, over which the tax rate must be applied according to the following table:
  1. The amount of the tax obtaining from applying the tax rate must be reduced by the discount for personal expenses.
  2. The result must be divided by 12 to establish the monthly rate to be withheld to the employee.


In order to calculate the maximum amount of the personal expense deduction, employers must apply the following procedure:

  1. The value of the employee’s personal expenses projected for the year must be informed to the employer. The maximum amount of personal expenses is equal to the value of the Basic Family Basket (BFC) of December of the previous fiscal year multiplied by 7. For the calculation of the monthly withholding of the fiscal year 2022 the maximum value for the personal expenses is US$5,037.55 which is equal to the value of the BFC of December 2021 (US$719.65) multiplied by 7.
  2. The employee’s gross annual income must be determined. This is equal to the total value of the employee’s income, including exempted income.
    1. If the employee’s gross annual income does not exceed US$24,090.30, the tax credit to be discounted from the income tax will be 20% of the value of the projected personal expenses (maximum US$5,037.55).
    2. If the employee’s gross annual income exceeds US$24,090.30, the tax credit to be discounted from the income tax will be 10% of the value of the projected personal expenses (maximum US$5,037.55).

The personal expenses to be considered for the calculation of the tax credit are those incurred for housing, health, food, clothing, tourism, and education, including art and culture.

* On the Circular NAC-DGERCGC21-00000007 issued by the Internal Revenue Service on December 30, the value of the FBC as of November 2021 was used as an example, since the value of December 2021 was not known at that date.

Andrea Moya - CorralRosales - Lawyer Ecuador

Specialist in Tax
Andrea Moya, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Bill for the organic law on unfair competition

Edificio circular con un recuadro azul por arriba y otro blanco por abajo. Pieza que habla sobre el proyecto de Ley Orgánica de Competencia Desleal, y lleva el logo de CorralRosales, abogados de Ecuador
On January 18, 2022, the Superintendency of Market Power Control (“SCPM”) submitted to the National Assembly the Bill for the Organic Law on Unfair Competition (the “BoL”), with the aim of creating legal frameworks different for acts of unfair competition and for restrictive practices of competition, such as the abuse of market power and agreements between competitors. This is an important initiative, which derives from the recommendations made by the OCDE, in the face of the verification of a very high incidence of sanctioning processes for unfair practices compared to those derived from restrictive practices of competition within the SCPM. It seeks to refocus the resources of the competition authority in strengthening the promotion of investigations and studies of restrictive practices of competition, control of economic concentrations and promotion of free competition.
 


Unlike the Organic Law for the Regulation and Control of Market Power, which only prohibited unfair practices when “these prevent, restrict, falsify or distort competition, threaten economic efficiency, or the general welfare or the rights of consumers or users”, the BoL prohibits all unfair practices but limits the competence of the SCPM, to the judgment and sanction of those cases in which the unfair practice due to its seriousness and magnitude, not only affects the particular rights of economic agents of the market, but also the interests of public order and free competition. In these cases, the conduct is classified as an aggravated unfair practice, which contemplates penalties from 8% to 12% of the total income.



 
According to the BoL, cases of unfair practices that are not classified as aggravated will be resolved in the civil jurisdiction, through any of the following acts:

  1. Declarative action of disloyalty.
  2. Action to cease the unfair conduct or prohibit its future repetition. The prohibition action may be exercised if the conduct has not yet been put into practice.
  3. Action to remove the effects produced by the disloyal conduct.
  4. Action to rectify misleading, incorrect, or false information.
  5. Action for compensation of damages caused by unfair conduct.
  6. Preventive measures established in this law.



In cases of aggravated unfair competition, if the affected party chooses to initiate the administrative procedure, he or she may not exercise legal action, with the exception of compensation for damages.
 
Among other behaviors, the following are typified as unfair practices in the BoL:

  • Acts of confusion;
  • Acts of deception;
  • Misleading omissions;
  • Aggressive practices;
  • Acts of limitation;
  • Acts of denigration;
  • Acts of comparison;
  • Exploitation of the reputation of others;
  • Violation of secrets;
  • Induction to breach of contract;
  • Violation of regulations;
  • Abuse of situation of economic dependency;
  • Sale at a loss;
  • Unfair advertising;
  • Sales with pyramid scheme


The BoL also replaces the name of “Superintendency of Market Power Control” with “Superintendency of Economic Competition”. The administrative procedures related to the investigation and sanction of alleged unfair practices that have been initiated before the enactment of this law, the BoL provides that they continue to be substantiated and resolved until their completion, in accordance with the LORCPM.

Ana-Samudio-abogados-ecuador

Specialist in the Competition area
Ana Samudio, associate at CorralRosales
asamudio@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a consequence of acting or not acting on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Minimum wages for economic sectors

Salarios-mínimos-sectoriales-para-el-2022
The Ministry of Labor through Ministerial Agreement MDT-2021-277, published in the second supplement to Official Register 606 of December 28, 2021, set the minimum wages for each of the 22 economic sectors for 2022.
 
Since January 1st, 2022, the increase of the minimum wages for each economic sector will be of 6,25%, applying “on this occasion” the same percentual increase used to set the statutory minimum wage for 2022 in regard to 2021.
 

Recommended actions

  • Increase the applicable percentage to the salaries of those workers who receive the minimum wages for economic sectors. This shall be updated in the payroll systems.
  • Communicate to the workers the salary modification.
  • Take into account the new the minimum wages for economic sectors when hiring employees.
  • Modify in the Social Security online system (IESS), the minimum sectorial wages of the corresponding workers.
  • Modify in the Ministry of Labor online system (SUT), the minimum sectorial wages of the corresponding workers.


Attached the Ministerial Agreement MDT-2021-277

Edmundo Ramos

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

Marta Villagómez

Specialist in Labor Law
Marta Villagómez, associate at  CorralRosales
mvillagomez@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a consequence of acting or not acting on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Taxable base for customs duties

Base-imponible-de-los-tributos-al-comercio-exterior - CorralRosales

The Law for Economic Development and Fiscal Sustainability After the COVID-19 Pandemic, enacted in the Official Gazette 587, Third Supplement, of November 29, 2021, introduced several amendments to the Code of Production, Commerce, and Investments (COPCI).
 
Regarding customs matters, the law provided for the exclusion of freight from the taxable base for the calculation of customs duties. Through Bulletin 96 issued on December 23, 2021, the Customs Authority (SENAE) stated the following:

  • For calculating the taxable base for customs duties (Advalorem tariff), the freight must be excluded from the customs value of the merchandise.
  • For calculating the taxable base of the remaining taxes on foreign trade (FODINFA, Value added tax and excise tax), freight should not be excluded from the customs value.


The Customs Authority established that, with respect to import customs forms filed from November 29, 2021 until December 23, 2021 that are in the process of nationalization, the form must be amended and the taxable base must be calculated based on the criteria indicated above.
 
With regard to imports made from November 29, 2021 to December 23, 2021 and which merchandise has already been nationalized, we recommend verifying that the taxable base was calculated correctly. If the importer paid less than the amount due, a substitute declaration may be filed; and, if the importer has paid more than the amount due, a reimbursement claim may be filed.

Andrea Moya - CorralRosales - Lawyer Ecuador

Specialist in Tax
Andrea Moya, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Settlement regarding tax matters

Transacción en materia tributaria - CorralRosales
The Law for Economic Development and Fiscal Sustainability After the Pandemic COVID-19, enacted in the Official Gazette 587, Third Supplement, on November 29, 2021, amended the Tax Code and, among others, the Internal Tax Regime Law.
 
On December 29, the President of the Republic issued the corresponding regulations. CorralRosales will summarize the most important changes introduced by the indicated regulations in several bulletins. The following analyzes the main elements of the SETTLEMENT in tax matters introduced by the law and regulations mentioned above.

  1. What can be settled?

It is possible to mediate and settle: (i) the assessment of the tax liability (including the assessment of disputed factual aspects), its interest, surcharges, and fines; (ii) the term for paying the tax liability, and (iii) the precautionary measures issued against the taxpayer within a coercive collection process.

  1. What cannot be settled?

It is not possible to settle: (i) the general scope of undetermined legal concepts in dispute; (ii) the annulment of regulations, ordinances, resolutions, and circulars of a general nature issued by the Tax Administration, and (iii) tax obligations which have not been declared by the taxpayer prior to the assessment process.

  1. Who may settle?

The transaction must be entered into between the highest authority of the Tax Authority, or its delegate, and the taxpayer. 
If two or more taxpayers enter into the settlement, all of them will be jointly and severally liable for the obligation contained in the settlement agreement.

  1. Is the settlement subject to challenge?

The settlement entered into by the taxpayer and the competent authority is final, binding and cannot be challenged in administrative or judicial proceedings. It can only be declared void if the transaction was made with respect to issues that cannot be settled.

  1. When does the transaction proceed?

A settlement may be reached: (i) during the assessment process; (ii) during an administrative claim; (iii) during an extraordinary administrative appeal; (iv) during the execution of the coercive collection process, and (v) during a judicial process.
 
In the case of final or enforceable assessment procedures, which have not been challenged or over which an extraordinary administrative appeal is pending, it will only be possible to negotiate with respect to payment facilities and deadlines, as well as the application of precautionary measures.

  1. What is the process to reach a settlement?

The taxpayer must submit its request to any mediation center or to any qualified mediator. The center or mediator must notify the Tax Authority, which will have a term of 30 business days to accept or reject the mediation process. 
If the Tax Authority accepts to initiate the settlement procedure, it shall perform a technical cost-benefit analysis prior to the execution of the agreement.


Once the Tax Authority has been notified with the request for mediation, the statute of limitation for assessing and collecting the tax obligation, and for issuing a resolution within administrative claims procedures, will be suspended. If no settlement is reached or the mediation process is not accepted, the statute of limitations period will be resumed.
In the case of assessments for which the term to challenge them in administrative or judicial proceedings has not expired, the notification of the request for mediation will suspend such terms. If no settlement is reached or the mediation process is not accepted, the term to challenge will be resumed.

The costs derived from the mediation process and its execution shall be borne by the applicant.

  1. What is the process to reach a settlement within a judicial procedure?

The settlement will take place during the preliminary or single hearing, as applicable. For this purpose, the judge may order that the dispute be referred to a mediation center. 
If the parties settle the total amount of the obligation, the judicial process will be concluded. If the settlement is partial, the judge will continue the judicial process on the matter in respect of which the dispute remains. 
If the judicial proceeding has already concluded and the judgement is being enforced, the parties may only settle on how to comply with the tax obligation, payment facilities and precautionary measures.

  1. Transitory Regime

Taxpayers who are being subject to assessment procedures or who have initiated judicial or administrative claims against the assessment may benefit from the settlement process subject to the following rules. Those who file the request for mediation:

  1. Until January 29, will be entitled to a reduction of 100% of the interest and surcharges applicable to the tax that the taxpayer agrees to pay in the settlement.
  2. Until February 29, will be entitled to a reduction of 75% of the interest and surcharges applicable to the tax that the taxpayer agrees to pay in the settlement.
  3. Until May 29, will be entitled to a reduction of 50% of the interest and surcharges applicable to the tax that the taxpayer agrees to pay in the settlement.

The reduction will only apply if the taxpayer agrees to pay immediately at least 25% of the principal. This payment must be made prior to the execution of the settlement.

Andrea Moya - CorralRosales - Lawyer Ecuador

Specialist in Tax
Andrea Moya, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Progressive reduction of the outflow tax rate (ISD)

Progressive reduction of the outflow tax rate (ISD) - CorralRosales - Lawyers Ecuador

On December 22, 2021, the President issued the Executive Decree 298 by which a progressive reduction of the outflow tax rate was ordered until reaching 4%, according to the following schedule: 

–    As of January 1, 2022, the tax rate will be 4.75%.
–    As of April 1, 2022, the tax rate will be 4.50%.
–    Beginning July 1, 2022, the tax rate will be 4.25%.
–    As from October 1, 2022, the tax rate will be 4%.

Withholding agents must make the necessary adjustments in their operating systems to comply with the rate reduction ordered in the Decree.

Andrea Moya - CorralRosales - Lawyer Ecuador

Specialist in Tax
Andrea Moya, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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Statutory minimum wage 2022

Salario básico unificado 2022 - CorralRosales - Abogados Ecuador

On December 13th, 2021, the President of the Republic of Ecuador, through Presidential Decree 286, ordered the Minister of Employment to submit to the consideration of the National Employment and Wages Council, the setting of the statutory minimum wage for 2022 on US$425 per month.

The aforementioned implies that, if the National Employment and Wages Council does not reach an agreement to fix the 2022 statutory minimum wage, the Minister of Employment shall fix it at US$425 per month, through a ministerial order to be issued by December 22nd.

Edmundo Ramos

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

Marta Villagómez

Specialist in Labor Law
Marta Villagómez, associate at  CorralRosales
mvillagomez@corralrosales.com
+593 2 2544144

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NOTE: The above text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a consequence of acting or not acting on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito / Guayaquil, Ecuador.

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