Introduction
The SRI (Servicio de Rentas Internas – Internal Revenue Service) has issued Resolution No. NAC-DGERCGC24-00000020, which establishes new reforms and guidelines for compliance with the Transfer Pricing regime in Ecuador. This resolution ensures transparency, fairness, and efficiency in related party transactions.
Legal Background
The Transfer Pricing regime in Ecuador is based on several articles of the Constitution of the Republic and the Tax Code. Specifically, Article 83 establishes the duties of the inhabitants to abide by the law and pay taxes, Article 300 defines the principles of the tax regime, and Article 6 of the Tax Code states that taxes also serve as instruments of economic policy.
Taxpayer Obligations
According to the new resolution, taxpayers performing related transactions must determine their income and costs, considering prices and values of considerations similar to those of independent parties. In addition, they must file specific schedules and reports to the Tax Administration on the established dates.
Non-Compliance Penalties
Failure to file or incorrect filing of Transfer Pricing reports will be sanctioned with fines reaching up to US$15,000, which can vary according to the type of taxpayer, classifying them into large, special, and other taxpayers subject to the regime.
Filing Deadlines
For the 2023 tax period, taxpayers have until September 2024 to file the Schedule of Related Party Transactions and the Comprehensive Transfer Pricing Report. From the effective date of this resolution, the reports must be under the new technical sheets published by the SRI.
Conclusion
The new guidelines established by Resolution No NAC-DGERCGC24-00000020 aim to improve the transparency and efficiency of the Transfer Pricing regime in Ecuador. Taxpayers must understand and comply with these obligations to avoid penalties and contribute to economic and national development.
For more details, please consult the complete document on the Internal Revenue Service website (www.sri.gob.ec).
