SRI Sets Mechanism For Tax On Undistributed Corporate Profits
Ecuador's Internal Revenue Service (SRI) established the mechanism for declaring and paying the single tax on dividends or profits not distributed to shareholders.
Filing Obligation
Under Resolution NAC-DGERCGC26-00000026, companies must comply if they have not distributed accumulated profits from prior years to shareholders by July 31 of the current fiscal year.
The filing must be made through the Formulario de Pago de Anticipo Mínimo de Impuesto a la Renta, Autorretenciones de Grandes Contribuyentes y Pago a Cuenta Sobre las Utilidades no Distribuidas, to be published in SRI en Línea.
Rate And Payment Options
The taxable base is calculated under the regulation's formula, using the prior-year income-tax return and accumulated profits from earlier years.
| Item | Detail |
|---|---|
| Rate range | 0% to 2.50% |
| Base at or below USD 100,000 | 0% rate, but filing still required |
| Single-payment code | 1077 Pago a cuenta sobre utilidades no distribuidas |
| Installment-payment code | 1078 - Pago a cuenta sobre utilidades no distribuidas cuotas |
| Installment months | August, September, and October |
Once a payment method is chosen, it cannot be modified through a substitute return. The SRI also says it will not grant an additional payment agreement for this income-tax advance.
What To Watch
Watch publication of the form in SRI en Línea, August filing execution, and whether companies with retained earnings alter distribution decisions before the July 31 cutoff.
Source
Primicias — “SRI establece el mecanismo para el pago del impuesto a las utilidades no distribuidas entre accionistas”
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