Tag Archives: Quito

 

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

The Ministry of Public Health (MSP), through memorandum No. MSP-SVPCS-2025-1061-M dated April 29, 2025, has established a mandatory health requirement for Yellow Fever vaccination for entry into the country.

1. Requirements

Starting Monday, May 12, 2025, presentation of the International Certificate of Vaccination against Yellow Fever will be mandatory in the following cases:

• All travelers who are nationals or residents of Colombia, Peru, Bolivia, or Brazil (regardless of the length of stay).
• Travelers of other nationalities who have stayed more than 10 days in any of these countries.
• Ecuadorian citizens returning after visiting these countries must present the certificate or will be vaccinated upon entry and required to remain under home observation for 10 days.

1. Important Considerations:

• The certificate may be physical or digital.
• It will be required at boarding points and may also be requested again upon entry into the country.
• Persons over 60 years of age are exempt for clinical reasons.
• The vaccine provides lifetime immunity with a single dose, effective 10 days after administration.

1. Recommendations for Passenger Transport Companies:

It is recommended to establish pre-boarding controls and to notify passengers in a timely manner. Non-compliance may result in delays or entry restrictions.

 

Xavier Rosales, Partner at CorralRosales
xrosales@corralrosales.com
+593 2 2544144

 

On April 11, 2025, Executive Decree No. 595 (the “Decree”) was issued, amending the Regulations to the Law on Public Procurement (“RGLOSNCP”). The Decree was published in Official Gazette Supplement No. 19 on April 14, 2025.

According to Article 3 of the Law on Public Procurement (“LOSNCP”), when public contracts are financed by multilateral credit organizations of which Ecuador is a member, international cooperation organizations, or through government-to-government financing, these contracts will primarily be governed by the terms of the respective contracts and financing agreements. The LOSNCP will apply secondarily.

Article 2 of the RGLOSNCP provides that the financing of these contracts may be either total or partial. The Decree amends this article to clarify that “partial financing” occurs when the foreign financing entity covers at least 51% of the total contract value, and the funds are directly allocated to the contract.

Additionally, the Decree requires the National Public Procurement Service to submit, by May 8, 2025, to the General Comptroller’s Office, all procedures carried out with the participation of an intermediary under Article 3 of the LOSNCP, for oversight purposes.

 

 

Hugo García Larriva, Socio en CorralRosales
hgarcia@corralrosales.com
+593 2 2567676

 

Mario Fernández, Asociado en CorralRosales
mfernandez@corralrosales.com
+593 2 2544144