We remind our subscribers that the following obligations must be met in August 2018 in Ecuador:  

Payment of the Fourteenth Remuneration for the Sierra and Amazon Regions

By August 15th employers must play the 14th remuneration to all employees who have requested accrued payment. The 14th remuneration amounts to one consolidated basic salary; that is $386 for 2018.

Estimate of Personal Expenses

If an employee believes that his/her expected personal expenses will be different to those originally submitted in January; in July or August, the employee shall submit a new estimate of personal expenses in July or August for the resettlement of future withholding.

Employers are obliged to apply income tax withholding at source for their employees on a monthly basis. For the purposes of calculating the withholding, salaried employees must submit an estimate of deductible personal expenses in January each year.

Submission of the 2017 Tax Compliance Report and Annexes

The Tax Compliance Report and its annexes for the 2017 tax year must be filed at the relevant Zonal or Provincial Department of the Internal Revenue Service in August, pursuant to the following calendar:

Ninth Digit of the “RUC” Deadline for Submission
1 August 10, 2018
2 August 12, 2018
3 August 14, 2018
4 August 16, 2018
5 August 18, 2018
6 August 20, 2018
7 August 22, 2018
8 August 24, 2018
9 August 26, 2018
0 August 28, 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.