Fifth Supplement to Official Gazette No. 326 | July 15, 2026

The Ecuadorian Internal Revenue Service (SRI) issued Resolution No. NAC-DGERCGC26-00000026, establishing the procedure for the declaration and payment of the advance payment on undistributed profits, an obligation introduced by the Organic Law on Social Transparency.

This obligation applies to Ecuadorian resident companies and permanent establishments of non-resident entities that, as of July 31 of each fiscal year, maintain accumulated profits from prior fiscal years that have not been distributed.

The Resolution provides that the declaration must be submitted exclusively through the SRI Online platform using the «Minimum Advance Income Tax, Large Taxpayer Withholding Tax, and Advance Payment on Undistributed Profits Form», under one of the following payment options:

• Single Payment: This option consists of declaring and paying the full amount during the month of August, according to the ninth digit of the taxpayer’s RUC, using obligation code 1077 – Advance Payment on Undistributed Profits.

• Installment Payment: Taxpayers may elect to split the amount into three consecutive installments payable in August, September, and October. Under this option, a separate declaration must be filed for each installment using obligation code 1078 – Advance Payment on Undistributed Profits (Installments), following the applicable filing deadlines based on the ninth digit of the taxpayer’s RUC.

The payment option selected may not be changed through an amended return and is not eligible for additional payment agreements.

Finally, the Resolution includes a general provision establishing that the advance payment obligation on undistributed profits for fiscal year 2025 will be deemed fulfilled for taxpayers who, prior to the publication of the Resolution, had already paid the full amount due under this concept using Form 106 («Multiple Payment Form») during the November and/or December 2025 tax periods.

Tax Department – BUSTAMANTE FABARA

For further information, please contact us at:

• Diego Pino: dpino@bustamantefabara.com
• Sofía Gordillo: sgordillo@bustamantefabara.com