Dear clients and friends,
By Executive Decree No. 191, dated October 27, 2025, the General Regulations to the Organic Law on Social Transparency were issued (Official Register, 8th Supplement No. 153, October 28, 2025).
Among other provisions, the Regulations govern the payment on account of undistributed profits and the single tax on the distribution of dividends or profits. With respect to the former, they clarify key aspects such as the calculation of the payment to be made in 2025, based on the 2024 income tax return, as follows:
- (+) Profit for the year (box 615).
- (–) Loss for the year (box 616).
- (–) Retained earnings from prior years (box 611).
- (+/–) 2024 adjustment for Income Valuation under the equity method.
- (–) Dividends distributed from January 1 to July 31, 2025.
The Regulations also set out the formula for the calculation applicable to fiscal years after 2025.
Payment must be made in August of each year, according to the ninth digit of the RUC number. However, with respect to the advance on undistributed profits corresponding to fiscal year 2025, filing and payment will take place in November and December, in two equal, interest-free installments.
Finally, the Regulations set forth the mechanism to offset or recover this payment in the event of dividend distributions and capitalization of profits.
Note: This topic will be discussed in detail during our free client webinar, to be held on Thursday, November 6, 2025 at 18:30. The registration link is available on our social media channels.
If you require additional information, please contact us at:
Diego Pino: dpino@bustamantefabara.com
Sofía Gordillo: sgordillo@bustamantefabara.com