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By means of Executive Decree No. 32 of June 15, 2025 (the “Decree”), published on June 18, 2025, in the Official Register No. 62, the General Regulations to the Law on Public Electricity Service (“RGLOSPEE”) were amended. The Decree entered into force on June 18, 2025.

 

Below is a summary of the main amendments:

 

1. High-voltage Disconnection. The National Electricity Operator is authorized to disconnect high-voltage consumers from the National Interconnected System (“SNI”) during periods of power generation deficit or rationing.

 

1. Mandatory Generation. High-voltage consumers will be required to implement power generation systems to cover their demand by December 18, 2026. Any surplus energy may be injected into the SNI, subject to the regulations issued by the Electricity Regulation and Control Agency (“ARCONEL”).

 

1. Direct Delegation. The Ministry of Energy and Mines (“MEM”) may directly delegate to the private sector the execution of electricity generation projects using non-conventional renewable sources (e.g., solar, wind, geothermal, small-scale hydro) or transitional sources (e.g., natural gas, nuclear, green hydrogen), provided such projects are not included in the Electricity Master Plan (“PME”) and their nominal capacity does not exceed 100 MW.

 

1. Simplified Procedure. Private electricity generation projects using non-conventional renewable sources (with capacities between 10 and 100 MW) or transitional sources (up to 100 MW), not included in the PME and incorporating energy storage and interconnection networks, may be directly delegated through a simplified procedure.

 

1. Public Selection Processes. The private sector may submit proposals to the MEM for electricity generation projects exceeding 100 MW or transmission projects that are not contemplated in the PME. These may be awarded through a public selection process (“PPS”), in which the proponent may participate and improve its bid under the terms of the respective PPS.

 

1. Self-generation. Private self-generation projects will not require prior approval from the Ministry of Economy and Finance (“MEF”).

 

1. Payment Guarantees. The State and/or public electricity distributors (the “Distributors”) may guarantee the payments to the private sector arising from concession contracts and/or regulated contracts through trusts, liquidity guarantees, contingency funds, or other similar mechanisms. In any case, approval by the MEF will be required.

 

1. Payment Priority. Payments derived from commercial transactions related to regulated demand must adhere to the order of priority established by ARCONEL, with private generators and transmitters occupying the first position. Distributors must establish trusts to comply with this order by December 15, 2025.

 

1. Assignment to financiers. Concession contracts may be assigned to financiers: (i) due to serious breach of payments and obligations by the concessionaire under the financing contracts; or (ii) due to breaches by the concessionaire of the concession contract. Financiers may assume the position of the concessionaire directly or through a third party approved by the MEM.

 

1. No reversion. The assets of generators installed for self-supply, self-generators, cogenerators, and non-conventional renewable energy generators with a capacity of up to 10 MW will not be required to revert to the State.

 

Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144

 

Mario Fernández, Associate at CorralRosales
mfernandez@corralrosales.com
+593 2 2544144

 

On June 13, 2025, the Ministry of Environment, Water and Ecological Transition (“MAATE”), through the Undersecretariat of Environmental Quality, issued Circular No. MAATE-SCA-2025-0010-C (“Circular”), addressed to companies in the hydrocarbons, mining, electricity, telecommunications and other activities subject to environmental control. The Circular states that:

• All Environmental Compliance Audits (“AAC”) shall be prepared solely based on the Terms of Reference (“TORs”) Type-Standard, contained in Annex 9 of Ministerial Agreement MAATE-MAATE-2024-074-A, issued on November 20, 2024 (“Agreement”).
• Customized TDRs will not be required to be submitted to or pre-approved by MAATE.
• Audits must be submitted within 90 days after the end of the audited period.
• Failure to submit the audits within the established deadline will be administratively sanctioned.
• The audit report shall expressly state that it was prepared in accordance with the Agreement and Annex 9.

The Circular applies generally and directly to all operators subject to environmental audits, within the framework of the procedures initiated before and after the entry into force of the Organic Environmental Code and its secondary regulations. The legal basis for this measure is found in the Agreement that approves the “Instrument for the immediate approval of Environmental Audits of Compliance and Conjunction, Terms of Reference and Environmental Compliance Reports”.

This Agreement is framed within the principles established in the Organic Law for the Optimization and Efficiency of Administrative Procedures, such as simplicity, celerity and subsequent control, which determines in the Third Transitory Provision that if the operator does not submit the withdrawal of its TDR process within 30 days from the entry into force of the Agreement, it will be obliged to use the Standard-Type TDRs.

Determined by the Agreement and the Circular:

• Review if you have previous active TDR proceedings and evaluate submitting a waiver if applicable.
• Plan the preparation of your Environmental Compliance Audit, ensuring its delivery within 90 days.
• Adapt your technical and legal procedures to the mandatory use of the standard format (Annex 9).
• Include the required regulatory reference in the background of the report to avoid observations.
• Train your environmental and legal staff on the new requirements to ensure effective implementation.

The Circular is a mandatory instruction of immediate application for all operators subject to environmental control. Compliance with it not only guarantees the validity of audits but also avoids delays and penalties. This measure represents a step towards the standardization and efficiency of environmental procedures in the country.

 

 

Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144

 

 

Through Official Register No. 56, Sixth Supplement, dated June 11, 2025, the Law of National Solidarity was published. This law introduces financial, tax, and security reforms aimed at ensuring national economic stability and promoting economic recovery.

Regarding the tax regime, the law establishes a benefit consisting of a reduction of the generated income tax, equivalent to the value of new equipment and supply donations made in favor of the National Police and/or the Armed Forces. This reduction may not exceed 30% of the tax and is not subject to reimbursement.

I.e., the law allows taxpayers to pay up to 30% of the income tax due through donations to the National Police and/or Armed Forces. For reconciliation purposes, this reduction would result in a lower calculation base for the profit-sharing payments to employees, as illustrated in the following example:

This new benefit will apply starting from fiscal year 2026.

 

 

Andrea Moya, Socia en CorralRosales
amoya@corralrosales.com
+593 2 2544144

 

On May 15, 2025, the “Ministerial Agreement MDT-2025-053 (hereinafter the “Agreement”)” was published in the fourth supplement of the Official Registry No. 39, it amends Ministerial Agreement MDT-2023-140 “General Rules Applicable to the Control of Employer’s Obligations and Inspection Procedures”. We highlight the following:

a) The Ministry of Labor; through the Single Labor System (hereinafter “SUT”); will generate a HASH code that will act as a digital fingerprint for any document that’s been registered, reported and/or approved in the SUT, in order to validate its authenticity.

 

b) Employers have 1 month from the beginning of the employment relationship, to register the employees’ required data.

 

c) Employers are required to keep in physical and/or digital format any document that’s has to be registered, approved and reported to the Ministry of Labor, in order to present them to the authorities when required.

 

d) Employers will have 15 days to complete the legalization process of termination minutes, which includes: (i) generating the termination minutes in the SUT, (ii) signing the document, (iii) making the payment, (iv) registering both the certificate and the payment in the system.

 

e) In the event that the former employees cannot be contacted or refuse to receive the settlement document, the employers will have 15 additional days to make the payment in the SUT.

 

f) Once the Internal Labor Regulations (RIT) are approved, employers will have 15 days to download the text and the resolution of approval, since after this period they will be deleted from the system.

 

g) Employers must deliver to their employees or former employees; either in original or as a certified copy; the documents derived from the contractual relationship (contracts, modification agreements, termination minutes, payment slips, among others).

 

h) Until May 2026, employers will be able to download in PDF the documents derived from the obligations registered, approved or reported in the SUT. This information will be automatically deleted once the established deadlines have been met.

 

Employers will be solely responsible for maintaining the information.

The Agreement stipulates that the corresponding ministry offices must take the necessary steps to update the SUT, as well as socialize the public on the use of the HASH code.

 

 

 

Edmundo Ramos, Socio en CorralRosales
eramos@corralrosales.com
+593 2 2544144

 

María Victoria Beltrán, Asociada Senior en CorralRosales
mbeltran@corralrosales.com
+593 2 2544144

 

 

Through Resolutions NAC-DGERCGC25-00000010 and NAC-DGERCGC25-00000011, the Internal Revenue Service (SRI) updated the lists of taxpayers designated as withholding agents and special taxpayers, respectively.

Taxpayers who have been included under either of these classifications must comply with the corresponding formal duties and tax obligations in accordance with the assigned status, starting June 1, 2025, and for as long as they retain such status.

Both taxpayers included and those excluded from the aforementioned categories are required to update their invoicing systems to reflect their new status by June 13, 2025.

 

 

Andrea Moya, Socia en CorralRosales
amoya@corralrosales.com
+593 2 2544144

On May 19, 2025, through Ministerial Agreement No. MEM-MEM-2025-0012-AM, the Minister of the Ministry of Energy and Mines (“MEM”) issued the Guidelines for the Loading, Packaging, Transportation, and Unloading of Copper Mineral Concentrate from Medium-Scale and Large-Scale Mining Operations (hereinafter, the “Guidelines”).

 

The purpose of the Guidelines is to ensure comprehensive safety, environmental protection, and traceability in the handling of copper mineral concentrate, from mine to the final destination. Compliance is mandatory for all holders of mining rights under the medium- and large-scale mining regimes. The Guidelines apply to all stages of the process, including the loading of concentrate at mining facilities, packaging, transportation by any authorized means (road, rail, among others), and unloading at ports or final destination facilities.

 

One key provision of the Guidelines is the mandatory use of hermetically sealed containers that meet structural safety and tamper-proof sealing standards. These containers must be dry, clean, and properly certified to prevent any type of leakage. The Guidelines also explicitly prohibit intermediate transfers of concentrate at ports, except in exceptional cases for official sampling by competent authorities.

 

Cargo generators—that is, mining titleholders responsible for transporting the concentrate—must submit a technical transportation and unloading plan, which will be reviewed and approved by the Competent Administrative Unit of the MEM. Additionally, they are required to implement a real-time monitoring system to ensure visibility, traceability, and transparency of concentrate transportation, and to provide regulatory authorities with access to this information.

 

The MEM will oversee compliance with these regulations through its Zonal Coordinations, while the Mining Regulation and Control Agency will be responsible for conducting regular technical inspections, issuing compliance reports, and imposing sanctions in the event of non-compliance.

 

Cargo generators are also required to develop and implement an annual training plan on the technical and environmental handling of the concentrate, which must be submitted to the relevant authority by January 31 of each year.

 

The Guidelines also establish a sanctioning framework for non-compliance. Sanctions may include monetary penalties or the immediate suspension of operations in cases posing serious risks to health, the environment, or infrastructure. In all cases, sanctioning procedures must observe due process, and the guarantees established in the Constitution and applicable laws.

 

Furthermore, mining titleholders who are in the production phase and are transporting concentrate as of the publication date of the Guidelines will have a maximum period of 12 months to transition to hermetically sealed transportation systems.

 

Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144

 

On May 14, 2025, the “Organic Law on Amendments Related to Age Discrimination in the Work Environment” (hereinafter the “Law”) was published in the seventh supplement of Official Register No. 38. We highlight the following:

• The Law establishes that employers must provide training to employees to promote a better working environment, preventing and eradicating harassment, violence, and discrimination based on age.

This training must be at least 10 hours long, and employers must report compliance to the Ministry of Labor using the established procedures and channels.

 

• Employers with 25 or more employees must include at least one employee over the age of 40 in their payroll.

Failure to comply with this obligation may result in a daily fine of USD 10 to USD 20.

• If job applicants believe they are being discriminated against based on age, they may request a formal and reasonable response explaining the decision not to hire them.

 

• Prohibited Practices Under the Law:

a. Discrimination, harassment, and violence based on age.

b. Including age restrictions in job advertisements.

c. Requiring private health, life, or critical illness insurance policies prior to employment.

d. Imposing age limits in training programs, promotions, or any situation that would result in improved employment conditions.

e. Terminating employment relationships based on age or by means of harassment or violence intended to induce resignation.

f.In institutions of higher education, requiring professors to retire, reduce their teaching hours, or change functions based on age.

Note: Before the publication of this Law, the Constitutional Court declared certain articles unconstitutional, prompting a presidential veto of the bill. Nevertheless, the National Assembly ordered its publication. The Law is currently in force.

 

We will inform you of any future developments.

 

Edmundo Ramos, Socio en CorralRosales
eramos@corralrosales.com
+593 2 2544144

 

María Victoria Beltrán, Asociada Senior en CorralRosales
mbeltran@corralrosales.com
+593 2 2544144

 

 

Trough Resolution NAC-DGERCGC25-00000009, the Tax Authority amended the provisions related to the Outflow Tax (ISD) applicable to payments abroad made through the use of credit cards.

Taxpayers who exceed the annual exemption threshold (USD 5,188.26) for the use of credit or debit cards for purchases or cash withdrawals abroad, and who have not been subject to ISD withholding, must file and pay the tax during the month of April of the following year, based on the ninth digit of their tax ID (RUC). Prior to this amendment, such tax filings were required on a monthly cumulative basis.

Taxable transactions corresponding to the year 2025 must be declared and paid in 2026. Taxpayers who have not filed ISD for taxable operations exceeding the annual exemption threshold for the years 2022, 2023, and 2024 must pay the accrued tax on an annual cumulative basis using the multiple payment form by June 30, 2025. Once this payment is made, taxpayers will no longer be required to file cumulative annual declarations for those periods.

 

 

 

Andrea Moya, Socia en CorralRosales
amoya@corralrosales.com
+593 2 2544144