We remind that the following obligations must be fulfilled in February 2020:
- Return and payment of the single temporary contribution for 2020
Companies, including branches of foreign companies that are residents in Ecuador and permanent establishments of non-resident foreign companies, that engage in economic activities and that in fiscal year 2018 have generated taxable income of one million dollars of the United States of America or more, including companies that are under a single income tax regime, must pay the single temporary contribution provided for in the Organic Law for Simple Progressive Taxation. The return and payment for 2020 must be filed through Form 124 between February 1 and March 31, 2020.
- Filing of Personal Expense Annex for the previous year
Individuals whose deductible personal expenses exceed 50% of the basic non-taxable allowance of the current income tax for the declared fiscal period are obligated to submit the information regarding their personal expenses for the immediately preceding year. The personal expense annex shall be filed in February pursuant to the ninth digit of their taxpayer registration number (RUC).
- Filing of Shareholders, Equity Holders, Partners, Members of the Board of Directors and Managers Annex
Companies, branches of foreign companies that are residents in Ecuador, and permanent establishments of non-resident foreign companies are obligated to file the Shareholders Annex. The Shareholders, Equity Holders, Partners, Members of the Board of Directors and Managers Annex must be filed through the Internal Revenue Service (SRI) website, in general, during February of the fiscal year following the one to which the information relates pursuant to the ninth digit of their RUC. Without prejudice to the relevant penalties provided for in the current tax legislation, failure to file or incomplete filing has consequences in regards to the applicable tax rate for the taxpayer. In the event of any changes to the list of partners or shareholders, the Annex must be filed by the 28th day of the month following the one in which the incorporation or change took place.
- Submission of information and documents relating to shareholders of foreign companies that are shareholders of local companies to the Superintendency of Companies, Securities and Insurance
Domestic legal entities with foreign legal entities among their partners or shareholders are obligated to file the following information with the Superintendency of Companies by February 5:
- A certificate of legal existence in their country issued by the competent authority in the country of origin and authenticated by an Ecuadorian consul or apostilled.
- Power of attorney issued in favor of a person in Ecuador so that they may answer claims and fulfil obligations acquired pursuant to Article 6 of the Companies Law. The power of attorney must be authenticated by an Ecuadorian consul or apostilled.
- A complete list of all the shareholders or members up to the ultimate beneficiary who is an individual or a company listed on a stock exchange. It must specify names, surnames and marital status in the case of individuals, and corporate name in the case of legal entities, and, in both cases, their nationalities and places of residence. This document must be signed before and certified by a notary public.
- If a foreign company is listed on one or more foreign stock exchanges, it must submit an affidavit in respect of such listing and of the fact that its entire capital stock is exclusively represented by registered shares, equity interests or certificates.
- If both documents are not submitted before the first regular shareholders’ meeting, the foreign company cannot attend, participate or vote in that meeting.
- If the information about the shareholding structure has not changed, it will be sufficient for the company to submit an affidavit stating it.