Regulation NAC-DGERCGC20-00000030 issued by the Internal Revenue Service on April 22, 2020, amended Regulation NAC-DGERCGC14-00787 which establishes the income tax withholding percentages.
The following income tax withholding percentages have been modified:
| Concept |
Previous withholding percentage |
Current withholding percentage |
| Real estate construction activities and similar activities. | 1% | 1,75% |
| Insurance and reinsurance services provided by companies legally incorporated in the country and by branchesof foreign entities domiciled in Ecuador. The withholding must be applied over 10% of the invoiced or scheduled premiums. | 1% | 1,75% |
| Commercial lease provided by companies legally established in Ecuador. The withholding must be applied over the lease payments and the purchase option. | 1% | 1,75% |
| Services provided by media and advertising agencies. | 1% | 1,75% |
Originally published by Corral Rosales, April 2020
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