On September 3, the Internal Revenue Service (SRI), through Resolution NAC-DGERCGC 19-00000043, updated regulations on the taxation of dividends. This includes provisions to be complied with by entities that are resident and non-resident in Ecuador and who act as withholding agents. The regulations have already come into force.
In addition, the SRI amended Resolution NAC-DGERCGC14-00787 , which establishes the withholding percentages at source of income tax. It states that payments or crediting of profits for the alienation of capital rights or other rights that allow the exploration, exploitation, concession or likewise of companies that are listed on the stock exchanges of Ecuador will be subject to a withholding tax of 1%. The regulation will enter into force on November 1, 2019.