The Internal Revenue Service issued the Regulation NAC-DGERCGC22-00000065 on December 30, 2022, by which the rules for the disclosure of the corporate structure were amended. The most important changes are summarized below:1. The last level of the corporate structure to be disclosed is the one that identifies the individuals who are the beneficial owners of the entity and/or are tax residents in Ecuador. This information excludes nominal or formal holders. 2. If the local entity has as -direct or indirect- shareholder an entity which is not a tax resident in Ecuador, this shareholder will be considered as the last level of the corporate structure to be disclosed if the individuals at the end of the chain own -individually or jointly with their related parties-, less than 10% of the local entity’s share capital. However, if at the end of the chain there are individuals who are tax residents in Ecuador, such individuals will be considered as the last level of the corporate structure to be disclosed, regardless of their percentage of ownership in the local entity. 3. If the local entity has as -direct or indirect- shareholder an entity listed in a foreign stock exchange, it will have to disclose the part of the entity’s share capital that is not traded or that is reserved to a limited group of investors. With respect to such part of the capital it shall report: a. Any shareholder holding -directly or indirectly- 2% or more of its share capital. b. All shareholders who are tax residents in Ecuador, regardless of their percentage of ownership. 4. The shareholders’ annex for the fiscal year 2022 may be filed until March 28, 2023.
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