On October 30^th, 2024, the Internal Revenue Service through Resolution No. NAC-DGERCGC24-00000035, introduced amendments to the Resolution No. NAC-NDGERCGC18-00000233. This modification extends the deadline for transmitting electronic sales vouchers and temporarily increases the permissible percentage for issuing physical sales vouchers.

The primary provisions of the amended resolution are as follows:

• Deadline for the transmission to the IRS: The amended resolution establishes that taxpayers could transmit electronic vouchers to the IRS “at the time of the electronic voucher generation, or within a maximum of four business days following the issuing date.”

• Allowed percentage for issuing physical sales vouchers: In cases where taxpayers face circumstances of force majeure that prevent them from generating electronic sales vouchers, they could issue physical pre-printed. However, the issuance of these physical vouchers is restricted to no more than 5% of the total vouchers generated in the previous fiscal year.

© TobarZVS 

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.

On December 13^th, 2024, the Internal Revenue Service issued the Resolution No. NAC-DGERCGC24-00000040, which sets out the conditions for applying additional tax deductions related to hiring women and fostering a net increase in employment. Below are the key highlights:

1. Additional Deduction Rates:

The resolution establishes the following additional deduction percentages based on the category of workers hired:

2. Conditions for applying the benefits for creating a net increase in employment:

• Net Job Creation: Employers must demonstrate a net increase in job positions by December 31 of each fiscal year.
  
  
• Eligible Employees: Hired workers must meet all legal, regulatory, and resolution-specific requirements.
  
  
• Employer Compliance: Employers must be current on their tax obligations with the IRS, Ecuadorian Social Security Institute (IESS), and Ministry of Labor.
  
  
• Restrictions: The benefit is not applicable to workers previously employed by the same employer, relatives within the fourth degree of consanguinity or second degree of affinity, or those included in other job creation incentives within the last three fiscal years.

3. Net Job Increase Calculation:

• The net job increase is determined by comparing registered workers in the Ministry of Labor as of December 31 of the current year with the previous year.
  
  
• For youth employment, focuses specifically on young workers hired during the fiscal year versus the previous fiscal year.
  
  
• All contract types established under the Labor Law are considered for this calculation.

4. Calculation of the Benefit Application:

• Applies exclusively to wages subject to Social Security contribution.
  
  
• Other social benefits or payments not taxable for Social Security are excluded from the calculation.
  
  
• In the case of young workers whose Social Security contributions are covered by the State, the additional deduction may still apply.

5. Duration of the benefit application:

• Employers can apply the additional deduction for up to 12 months from the start of the employment relationship, covering the corresponding fiscal year of hiring  and the next, provided the contract remains active.
  
  
• If the employment relationship ends before December 31, the benefit may still apply if the position is promptly filled by a qualified candidate.

6. Application of the Benefit for Hiring Women:

• Employers can claim an additional deduction of up to 140% for hiring women, provided they remain employed for the legally required period.
  
  
• In case of termination, the benefit may still apply if the position is filled by another woman, with the benefit adjusted to the new contractual conditions.

© TobarZVS 

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.