THE LIST OF SPECIAL TAXPAYERS AND WITHHOLDING AGENTS HAS BEEN UPDATED

 

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

© CORRALROSALES 2024
NOTA: EL texto anterior ha sido elaborado con fines informativos. CorralRosales no es responsable de ninguna pérdida o daño ocasionado como consecuencia de haberse actuado o dejado de actuar en base a la información contenida en este documento. Cualquier situación determinada adicional requiere la opinión y concepto específico de la firma.

CORRALROSALES

THE MINISTRY OF ENERGY AND MINES ISSUED THE GUIDELINES FOR THE LOADING, PACKAGING, TRANSPORTATION, AND UNLOADING OF COPPER MINERAL CONCENTRATE FROM MEDIUM-SCALE AND LARGE-SCALE MINING OPERATIONS

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

 

© CORRALROSALES 2025
DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito/Guayaquil, Ecuador.

CORRALROSALES

ORGANIC AMENDMENT LAW ON DISCRIMINATION IN THE WORKPLACE

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

 

© CORRALROSALES 2024
NOTA: EL texto anterior ha sido elaborado con fines informativos. CorralRosales no es responsable de ninguna pérdida o daño ocasionado como consecuencia de haberse actuado o dejado de actuar en base a la información contenida en este documento. Cualquier situación determinada adicional requiere la opinión y concepto específico de la firma.

CORRALROSALES

ISD TAX RETURN FOR PAYMENTS ABROAD MADE THROUGH CREDIT AND DEBIT CARDS

 

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

© CORRALROSALES 2024
NOTA: EL texto anterior ha sido elaborado con fines informativos. CorralRosales no es responsable de ninguna pérdida o daño ocasionado como consecuencia de haberse actuado o dejado de actuar en base a la información contenida en este documento. Cualquier situación determinada adicional requiere la opinión y concepto específico de la firma.

CORRALROSALES

MANDATORY YELLOW FEVER VACCINATION REQUIREMENT FOR ENTRY INTO ECUADOR

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

 

© CORRALROSALES 2025
DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm in Quito/Guayaquil, Ecuador.

CORRALROSALES

AMENDMENTS TO THE REGULATIONS TO THE LAW ON PUBLIC PROCUREMENT

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

© CORRALROSALES 2024
NOTA: EL texto anterior ha sido elaborado con fines informativos. CorralRosales no es responsable de ninguna pérdida o daño ocasionado como consecuencia de haberse actuado o dejado de actuar en base a la información contenida en este documento. Cualquier situación determinada adicional requiere la opinión y concepto específico de la firma en Quito / Guayaquil, Ecuador.

CORRALROSALES

SUSPENSION OF THE WORKDAY THURSDAY, APRIL 17, 2025

The President of the Republic, by means of Executive Decree No. 598 issued on April 11, 2025, has declared that the workday on Thursday, April 17, 2025, will be suspended for both the public and private sectors.

The suspended workday for the public sector will be subject to recovery. In the case of the private sector, the recovery mechanism may be determined as deemed necessary.

 

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

 

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

 

© CORRALROSALES 2024
NOTA: EL texto anterior ha sido elaborado con fines informativos. CorralRosales no es responsable de ninguna pérdida o daño ocasionado como consecuencia de haberse actuado o dejado de actuar en base a la información contenida en este documento. Cualquier situación determinada adicional requiere la opinión y concepto específico de la firma.

CORRALROSALES

Crackdown on intellectual property rights infringement

CorralRosales’ in close collaboration with the authorities, conducted a significant operation, resulting in the seizure of more than 18,000 counterfeit shoes.

Distributing these infringing products nationwide infringed upon registered and widely recognized intellectual property rights. Following the due legal process, penalties may include fines and destruction of the infringing goods.

Such illegal activities aim to mislead consumers and profit from the reputation of established trademarks.

By reinforcing enforcement efforts, we help ensure a safer and more transparent market and keep counterfeits out.

This milestone reaffirms our unwavering commitment to combat intellectual property infringements and protect the market from illegal and deceptive practices. It also highlights the importance of ongoing vigilance and strong action to disrupt the supply chain of infringing goods.

#IntellectualProperty #IPR #Enforcement #AntiCounterfeiting #Quito #BrandProtection #LegalAction #MarketIntegrity

Application by distributor rejected on grounds of bad faith and unfair competition

 

  • An application for GOLOKO was opposed based on the marks FOUR LOKO and the contractual relationship between the parties in Peru
  • While the Ecuadorian IP Office rejected the opposition, an action for industrial property rights infringement was upheld in Peru
  • The Ecuadorian IP Office overturned the first-instance decision, finding bad faith and unfair competition on theapplicant’s part

Trademark registration is a key mechanism for protecting IP rights. However, this procedure is not always straightforward or legitimate, and there are cases where trademark applications may be rejected due to bad faith or unfair competition. For example, trademark applications have been submitted by distributors which, in the absence of a trademark registration in Ecuador, have attempted to register the relevant trademark despite a distribution agreement confirming that ownership belonged to its legitimate owner, the grantor. In a recent case, the Ecuadorian IP Office issued an interesting resolution denying the registration of a trademark on the ground that the application constituted an act of bad faith and unfair competition.

Background

Food For Life EIRL applied to register the trademark GOLOKO for goods in Class 33. This application was opposed by Phusion Projects LLC based on the marks FOUR LOKO, registered in Class 32, and the contractual relationship between the parties in Peru.

Phusion Projects and Food For Life maintained a contractual relationship, as the applicant had been an authorised distributor of FOUR LOKO-branded goods in Peru for several years. Therefore, at the time of the trademark application for GOLOKO, the applicant had full knowledge of the existence, ownership and recognition of the FOUR LOKO marks.

The IP Office rejected the opposition, considering that there were sufficient differences between the marks to avoid confusionamong consumers. However, the contractual relationship between the parties was not analysed.

In parallel, a complaint for industrial property rights infringement was filed in Peru against Food For Life and its related company, Servicios Exal SAC, for manufacturing, marketing, distributing and promoting beverages under the GO LOKO marks. Injunction measures were requested against use of these marks, claiming that, in addition to the visual and aural similarities between the marks, the packaging of the contested goods was highly similar to that bearing the registered trademark.

The action was upheld in Peru, serving as primary evidence that the application filed in Ecuador constituted an act of unfair competition and bad faith.

Decision

The Ecuadorian IP Office, through Resolution OCDI-2025-167, overturned the first-instance decision, accepted the opposition filed by Phusion Projects and denied the registration of the GOLOKO trademark.
The main arguments for finding bad faith and unfair competition on the part of the applicant were as follows:

  • Food For Life intended to compete in the Ecuadorian market with a mark that could be confused with an already registered trademark; and
  • Food For Life, as a distributor of Phusion Projects in Peru, was aware of FOUR LOKO’s market penetration and recognition.
  • Food For Life intended to use this knowledge to its advantage by registering a confusingly similar mark.

Comment

With this resolution, the Ecuadorian IP Office set a groundbreaking precedent for the protection of trademarks which, due to their notoriety and market positioning resulting from their owners’ advertising efforts, are attractive to competitors seeking to obtain unfair benefits.

The rejection of trademark registrations on the ground of bad faith and unfair competition is an essential mechanism to ensure fairness in the market and protect IP rights. In cases where there is a distribution agreement between the applicant and the opponent, the evaluation of the application becomes even more crucial, as prior agreements between the parties play a significant role in determining the legitimacy of the registration. Companies and distributors must act transparently under commercial contracts
and intellectual property laws to avoid conflicts and ensure proper market competition.

Andrea Miño Moncayo
CorralRosales
20 March 2025

OUTFLOW TAX (ISD) RATE

Through Executive Decree No. 589 dated March 29, 2025, the President of the Republic of Ecuador extended the 0% Outflow Tax (ISD) rate until April 30, 2025, for the list of tariff subheadings issued by the Ministry of Economy and Finance.

The list can be reviewed at the following link: https://corralrosales.com/wp-content/uploads/2025/01/ISD-Registro-Oficial-9-70.pdf.

This regulation amends Executive Decree 468, which established the tariff subheadings subject to reduced Outflow Tax rates as of January 1, 2025. Subheadings not included in the list are subject to the 5% Outflow Tax.

 

Andrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

Mateo Bravo, Associate at CorralRosales
mbravo@corralrosales.com
+593 2 2544 144

 

© CORRALROSALES 2025
NOTE: The above text has been prepared for informational purposes. CorralRosales is not liable for any loss or damage incurred as a result of acting or failing to act on the basis of the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.

CORRALROSALES