We remind you that the following obligations must be met in January 2021:
- Semi-annual VAT return
Taxpayers who only transfer goods or provide services subject to a 0% rate or that are untaxed, and those who are subject to withholding of the total VAT incurred, shall file a semi-annual return for these transfers. The information on operations made between July and December 2020 must be filed in January 2021 according to the ninth digit of the Taxpayer Registration Number (RUC).
- Filing of the PVP Annex for Taxpayers Subject to ICE
Manufacturers and importers of goods and service providers who are subject to Excise Tax (ICE) must submit information on suggested retail prices (PVP) as at December 31, 2020, within the first five days of January of 2021.
- Filing of the Withholding at Source for Salaried Employees Annex
Regarding payments made to their employees, employers must file information on income tax withholding at source applied to income under the employment relationship between January 1 – December 31, 2020. This information must be submitted through the Internal Revenue Service’s website, even in cases in which no withholdings were generated during the above period.
- Filing of the estimate of personal expenses
All taxpayers under an employment relationship must provide their employer with an estimate of deductible personal expenses for the purpose of calculating income tax expected to be incurred over the 2021 fiscal year. This document must specify the itemized expenses and estimated amounts for the whole fiscal year.
- Filing of information and documents relating to shareholders of foreign companies that are shareholders of domestic companies
Domestic companies that have foreign companies among their shareholders must file with the national tax authority the list of the companies or legal entities that are their shareholders showing the corresponding names, nationalities, and domiciles, together with notarized copies of certificates of legal existence issued by the competent authority in the country of origin.
- Filing of information on employees of companies engaged in complementary activities
By January 31, all companies engaged in complementary activities must submit a list of their employees and former employees indicating the date of commencement of services for the user company, the days of actual work, and the number of dependents.
We remind you that in calculating employees’ profit sharing the user company must take into consideration their own employees and former employees as well as the employees and former employees of companies that performed complementary activities for them.
- Filing of information on prevention of occupational hazards
In January of every year, employers or insured parties shall file annually with the General Occupational Hazards Insurance of the Ecuadorian Social Security Institute (IESS) reactive indexes regarding occupational hazard prevention. Among other things, information on frequency rates, severity rates and risk rates must be filed.
Likewise, a report on the main issues discussed at the previous year’s sessions of the Occupational Safety and Health Committee must be filed every year in January, indicating everything that has been done.
We also remind you that the following obligations must be met monthly:
- Filing of the Simplified Transactional Annex
- Filing of Income Tax Withholding at Source
- Monthly VAT return
- ICE return
- ICE Annex
- Payment of obligations to IESS
- Payment of reserve funds
- Payment of the thirteenth and fourteenth salary if it is paid monthly.