Ecuador

Ecuador Updates Withholding Tax Rates and Appoints New Withholding Agents Effective March 2026

Posted on by llbsadmin
Blog ecuador
03
Mar

The Ecuadorian Internal Revenue Service (SRI) issued Resolutions NAC-DGERCGC26-00000009 and NAC-DGERCGC26-00000010, which update the withholding tax rates for Income Tax and designate new withholding agents.

These provisions are effective as of March 1, 2026, and require immediate adjustments to accounting processes and business systems.

New Withholding Tax Rates

According to Resolution NAC-DGERCGC26-00000009, taxpayers who pay or credit taxable income must apply the following updated rates:

  • Labor services: from 2% to 3%
  • Purchase of tangible movable goods: from 1.75% to 2%
  • Professional services provided by corporations: from 3% to 5%
  • Advertising and media services: from 2.75% to 3%
  • Financial income: from 2% to 3%

It is essential for companies to verify that their accounting systems and ERP platforms are configured with the new rates to avoid inconsistencies or tax contingencies.

Is There a Transition Period?

Yes. On an exceptional basis, the SRI has established that withholding vouchers corresponding to the first half of March 2026 may be issued until March 31, 2026, without triggering non-compliance or penalties.

This period is intended to allow companies to adapt their IT systems to the new rates.

New Withholding Agents

Through Resolution NAC-DGERCGC26-00000010, the SRI designates new withholding agents for Income Tax and VAT, based on the volume of transactions and the nature of their activities.

The SRI will automatically update the Taxpayer Registry (RUC). Designated companies may reprint their updated certificate through the “SRI Online” portal.

The official list can be consulted directly on the SRI website:
https://www.sri.gob.ec/web/intersri/catastros

Is Your System Ready for These Changes?

Updates to withholding tax rates and the designation of new withholding agents require timely adjustments in accounting systems and ERP platforms to ensure tax compliance and avoid reprocessing.

At LLB Solutions, we support companies in properly configuring and updating their systems in accordance with current tax regulations.

Contact us to ensure your operations are aligned with the new SRI requirements.

info@llbsolutions.com | Ecuador Localization

 

llbsadmin