Reminder – April 2018 obligations
We remind our subscribers that the following obligations must be met during April 2018:Delivery of documents to the Superintendency of Companies, Securities and Insurance: Companies subject to control and surveillance of the Superintendency of Companies, Securities and Insurance must deliver their financial and corporate information during the first four months of the year, namely no later than by April 30.Labor profit sharing: By April 15 employers must deliver the amount corresponding to 15% of their profits to their employees.Ten percent of that sum will be divided among all the employees, regardless of the salary corresponding to each of them. Five percent will be delivered in proportion to their family dependents. Employees who have not worked during a complete year will receive the proportional amount corresponding to the duration of their services.We wish to recall that the Constitutional Court of Ecuador has declared the labor profit sharing limit unconstitutional, and therefore that limit would not apply to determine and pay the profits corresponding to the 2017 fiscal period.Declaration and payment of income tax of juridical persons: Juridical persons must declare and pay their income tax in April according to the following timetable:Ninth digit RUC(taxpayer registration number) Deadline1 April 102 April 123 April 144 April 165 April 186 April 207 April 228 April 249 April 260 April 28Income tax advance payment determination: In their tax return corresponding to the 2017 fiscal year, corporations, undivided estates, individuals, and companies that have executed or will execute contracts for exploration and exploitation of hydrocarbons according to any contractual system must determine the income tax advance payment to be paid and charged to the 2018 fiscal year.The resulting amount must be paid in two equal installments in July and September according to the ninth digit of the RUC.Submission of information on monetary assets kept abroad in 2016: Persons obligated to submit information in respect of monetary assets kept with financial entities abroad must submit the information corresponding to year 2016 no later than on April 30, 2018.Submission of Annex on SWIFT transfers corresponding to January and February 2018: Entities comprising the national financial system are obligated to report transfers received and delivered through the SWIFT (Society for Worldwide Interbank Financial Telecommunications) messaging system.The annex on SWIFT transfers corresponding to January and February 2018 must be submitted no later than on April 30, 2018.  http://www.pbplaw.com/no-habra-limite-para-utilidades-de-2017/  You may find more information in the following links: http://www.pbplaw.com/sri-amplia-fecha-presentacion-informacion-activos-monetarios-en-extranjero/ and http://www.pbplaw.com/sri-obligacion-reporte-activos-monetarios-exterior  You may find more information in the following links: http://www.pbplaw.com/sri-modifica-calendario-anexo-transferencias-swift/ and http://www.pbplaw.com/sri-entidades-sistema-financiero-reportar-transferencias-mediante-el-swift/ Warning: This newsletter by Pérez Bustamante & Ponce is not and cannot be used as legal advice or opinion since it is merely of an informative nature.
Internal Revenue Service: Modifications of payments of mining royalties on exports of metallic mineral substances
The Internal Revenue Service (“SRI”) has modified Resolution NAC-DGERCGC16-00000218 that establishes the necessary rules for payment of mining royalties on exports of metallic mineral substances by a concessionaire. According to this modification, a mining concessionaire must pay the mining royalties per each transaction of mineral substances in the case of exports of metallic mineral substances exploited by mining concessionaires and entered under tariff headings 2603000000, 2616100000, 2616901000, 7108120000, 7108130000, 7112990000, 7106911000 and other applicable sub-headings, except if the taxpayer exploiting them belongs to the public sector. The SRI will make available to the Mining Regulation and Control Agency the necessary information to verify this payment as a previous requirement for each exportation. The SRI will make available to the Mining Regulation and Control Agency the necessary information to verify this payment as a previous requirement for each exportation.  Resolution NAC-DGERCGC18-00000107 published in Official Register Supplement 202 dated March 16, 2018. Warning: This newsletter by Pérez Bustamante & Ponce is not and cannot be used as legal advice or opinion since it is merely of an informative nature.
How to calculate the base of mining royalty payments for non-metallic mineral exploitation
The Internal Revenue Service (“SRI”) issued rules governing the use of accounting information and applicable criteria to establish the costs that are part of the taxable base to calculate royalties on non-metallic mineral exploitation by the holders of mining rights on small, medium and large scale non-metallic mining during the exploitation phase. The Resolution mainly provides the following: The mining concessionaire will be responsible for recording revenues, costs and expenses separately per each concession. The resulting financial statements will be the basis for filing tax returns and will be used to calculate royalties and other mining-related tax obligations. To calculate royalties on non-metallic mineral exploitation, direct and indirect production costs will be used for the taxable base. The following costs will be considered part of the taxable base to calculate royalties on non-metallic mineral exploitation:Operation costs, as long as used for mining exploitation processes. Depreciations/amortizations, as long as used for mining exploitation processes. Transport costs up to the boundaries of the mining concession.If a concessionaire is unable to demonstrate and identify in its accounting the distribution of the same cost among several mining concessions held by him during the exploitation phase, the total amount of such cost will be distributed proportionally on the basis of production. The result obtained will be the amount allocated to each concession. A mining concessionaire must enter the “investments for exploration and preparation of the mine” in his accounting books as an asset. For accounting purposes, any real or personal property built or acquired on whatever basis by mining concessionaires to be used in mining concession activities with a useful life greater than one year will be considered “property, plant and equipment required for mining activities”.“Mining exploitation” is understood to be the entirety of mining operations, works and tasks for preparation and development of a mining deposit and for extraction and transport of minerals within the perimeter of the concession.  Resolution NAC-DGERCGC18-00000103 from the SRI published in Official Register Supplement No. 202 dated March 16, 2018. Warning: This newsletter by Pérez Bustamante & Ponce is not and cannot be used as legal advice or opinion since it is merely of an informative nature.