On December 31, the President of Ecuador, Guillermo Lasso, issued the Regulation of the Organic Law for Economic Development and Fiscal Sustainability. The document establishes the provisions for the application of income tax withholding to workers, as well as the process of regularization of assets abroad. On the other hand, the Superintendency of Banks modified the Regulations for the protection and defense of the rights of financial consumers of public and private entities. The regulations issued are already in force.
- Regulations of the Organic Law for Economic Development
The regulation stipulates that the payment of wealth tax will be mandatory for individuals who, as of January 1, 2021, have maintained an individual net worth equal to or greater than US$1 million, or, when there is a marital partnership, equal to or greater than US$2 million. In the case of tax residents in Ecuador, the contribution will be calculated and paid on the declared net worth. While, for non-tax residents, the payment and calculation of the tax will be on the goods and assets located in Ecuador. In turn, companies will continue to withhold income tax on a monthly basis.
On the other hand, the law states that for the income tax exemption of the amounts collected as part of the provision of electronic payment services, those entities recognized as such by the Superintendency of Banks of Ecuador will be considered Auxiliary Services of the Financial System, which will publish on its website the list of recognized entities.
- Reform to the regulation for the protection and defense of financial consumer rights.
Resolution No. SB-2021-2262 adds a fourth final provision to the protection regulation, in order to establish that, for the effective protection of rights related to the processing of personal data and credit information of financial consumers, financial institutions must act in strict compliance with the provisions of the Organic Law on Personal Data.