The Internal Revenue Service (“SRI”), through Resolution No. NAC-DGERCGC25-00000004 dated February 24, 2025, established the obligation for mining actors to submit the “Mining Annex” to report detailed information on their exploration, exploitation, beneficiation, local commercialization, and export of metallic and non-metallic minerals (the “Resolution”). This reform aims to strengthen control in the mining sector, prevent money laundering, and generate records that facilitate tax determination processes.
- Obligated Parties
The following natural and legal entities, both public and private, are required to submit the Mining Annex:
- Mining concession title holders, commercialization license holders, and beneficiation plant owners;
- Those who have signed contracts for operation, assignment, mandate, and transfer of mining rights;
- Those engaged in exploration, exploitation, beneficiation, transportation, commercialization, or export of metallic and non-metallic minerals.
- Information to be Reported
Obligated parties must declare the following information for each mining right code, as applicable:
- Identification data. Taxpayer Identification Number (“RUC”), corporate name or full name, legal representative, fiscal year, semester, type of mining right or contract, and address.
- Mining concessions. Location (province, canton, parish), workers affiliated with the Ecuadorian Social Security Institute (“IESS”), mining right code and name, hectares, date of granting and registration, validity, regime and mining phase, contract details.
- Commercialization licenses. Location, workers affiliated with IESS, mining right code and name, concessioned hectares, date of granting and registration, validity, mandate contract information, principal identification, number and value of sales.
- Beneficiation plants. Location, workers affiliated with IESS, client’s mining right identification and code, quantity and type of processed mineral, service value, and information on recovered and commercialized tailings.
- Mining operators. Contract location, workers affiliated with IESS, mining concession code and operation contract, validity.
- Mandate contracts. Location, workers affiliated with IESS, principal’s identification, number and amount of sales, agent information.
- Produced mineral. Type, quantity, unit of measure, stock of primary and secondary mineral.
- Purchases. Sales invoice number, supplier identification, quantity, unit of measure, mineral type, amount, and origin.
- Local sales and exports. Sales invoice, client, commercialization contract details, type, value, unit of measure, and quantity of mineral, contents, payable amounts for primary and secondary minerals, credit notes, customs declaration number, tariff subheading, transportation, and shipping guide.
- Investments. Mineral concession code and regime, total and pre-operational investment amount, complementary exploration, deposit development.
- Property, plant, and equipment. Details of registered assets and reported machinery usage.
- Submission Deadlines
The Mining Annex must be submitted semiannually during September and March, according to the ninth digit of the obligated party’s RUC. Submission is required even if no information was generated during the period.
- Consequences of Non-Compliance
Mining actors who fail to submit the Mining Annex as required by the Resolution, submit it late, or present incomplete information may face administrative penalties, including a fine of up to US$ 1,000.
Andrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144
Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144