Regulation NAC-DGERCGC20-000000025 issued by the Internal Revenue Service on April 1, 2020 regulates the application of Executive Decree 1021 by which regulated certain tax issues with regard to the state of emergency.
1. New deadline for filing the income tax return
Taxpayers, except non-profit and government entities, may file the corporate income tax return for the fiscal year 2019, without generating fines or interest, until the dates described in the following chart:
|Tax ID 9th digit||
|1 and 2||April 15, 2020|
|3 and 4||April 17, 2020|
|5 and 6||April 21, 2020|
|7||April 23, 2020|
|8 and 9||April 29, 2020|
|0||April 30, 2020|
Non-profit and government entities may file the corporate income tax return for the fiscal year 2019, without generating fines or interest, until the dates described in the following chart:
|Tax ID 9th digit||
|1 and 2||May 4, 2020|
|3 and 4||May 5, 2020|
|5 and 6||May 6, 2020|
|7 and 8||May 7, 2020|
|9 and 0||May 8, 2020|
2. Taxpayers that are able to defer the payment of taxes:
The following taxpayers are able to defer the payment of corporate income tax of the fiscal year 2019 and, value added tax (VAT) to be declared in April, May and June 2020:
- Micro-enterprises understood as those that obtained gross revenues of up to US$300,000.00 during fiscal year 2019.
- Taxpayers that, before March 27, 2020, have registered the province of Galapagos in their Tax ID (RUC).
- Taxpayers that are regular exporters of goods, or that 50% of their income derives from the export of goods; or,
- Taxpayers that, before March 27, 2020, have registered one of the following as their main economic activity in their Tax ID:
- The operation of airlines,
- The provision of accommodation and/or food services; or,
- Activities of the agricultural sector.
3. Deadlines for paying the corporate income tax:
Taxpayers described in paragraph 2 are able to pay the corporate income tax of the fiscal year 2019 in a single installment, according to the general rules of the Income Tax Regime Law and its regulations, or in six installments, in accordance with the following percentages:
|Month for filing
the tax return
|April, 2020||April, 2020||10%|
|April, 2020||May, 2020||10%|
|April, 2020||June, 2020||20%|
|April, 2020||July, 2020||20%|
|April, 2020||August, 2020||20%|
|April, 2020||September, 2020||20%|
The first installment shall be paid on the date the return is due in accordance with the schedule set forth in paragraph 1. The remaining 5 installments shall be made through the Multiple Payment Form in accordance with the following schedule:
|Tax ID 9th digit:||
|1||10th of each month|
|2||12th of each month|
|3||14th of each month|
|4||16th of each month|
|5||18th of each month|
|6||20th of each month|
|7||22th of each month|
|8||24th of each month|
|9||26th of each month|
|0||28th of each month|
If the taxpayer doesn’t pay the tax within the deadlines described before, it would be subject to pay the applicable interests and fines.
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