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The Internal Tax Regime Law establishes that employers, in their capacity as withholding agents, are required to provide withholding receipts to individuals from whom Income Tax withholdings at have been withheld at source.
For employment income withheld under an employment relationship, such receipts must be submitted during the month of January each year and correspond to the withholdings made during the immediately preceding fiscal year.
The receipts may be delivered to employees in either physical or electronic format. Failure to comply with this obligation results in monetary penalties for Type A Regulatory Offenses, with fines ranging from USD 30 to USD 83.25 per infringement, depending on the type of taxpayer.
In this context, employers are advised to coordinate with their accounting and human resources departments to ensure the timely issuance and delivery of the withholding receipts corresponding to the year 2025, in order to comply with the established deadline and avoid potential contingencies.
For further information or tax and labor advisory services, please contact Tobar ZVS at laboral@tzvs.ec.
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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.