{"id":15923,"date":"2026-09-25T13:16:03","date_gmt":"2026-09-25T18:16:03","guid":{"rendered":"https:\/\/bustamantefabara.com\/en\/?p=15923"},"modified":"2026-09-25T13:19:26","modified_gmt":"2026-09-25T18:19:26","slug":"sri-clarifies-requirements-for-substantiating-losses-arising-from-inventory-write-offs","status":"publish","type":"post","link":"https:\/\/bustamantefabara.com\/en\/sri-clarifies-requirements-for-substantiating-losses-arising-from-inventory-write-offs\/","title":{"rendered":"SRI Clarifies Requirements for Substantiating Losses Arising from Inventory Write-Offs"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

SRI Clarifies Requirements for Substantiating Losses Arising from Inventory Write-Offs<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Third Supplement to Official Gazette No. 372 | September 18, 2026<\/strong><\/p>

The Ecuadorian Internal Revenue Service (Servicio de Rentas Internas or \u201cSRI\u201d) issued Circular No. NAC-DGECCGC26-00000006, clarifying the requirements that must be met to substantiate losses arising from inventory write-offs when such losses are claimed as deductible for Income Tax purposes.<\/p>

In particular, the SRI reminds taxpayers that the sworn statement used to substantiate such losses must be executed before a notary public or judge by the company\u2019s legal representative, warehouse manager, and accountant, in accordance with Article 28, paragraph 8, subsection (b) of the Regulations for the Application of the Internal Tax Regime Law. Such sworn statement must evidence the destruction of the inventory or, where applicable, its donation to a public entity or a private non-profit institution.<\/p>

Likewise, the Circular provides that the provisions of the aforementioned regulation must be applied directly and renders inapplicable the criterion set forth in Circular No. NAC-DGECCGC14-00004, published in Official Gazette No. 189 on February 21, 2014. That Circular had established that the sworn statement had to be executed by December 31 of the fiscal year in which the inventory write-off occurred.<\/p>

Accordingly, the SRI reaffirms that the deductibility of losses arising from inventory write-offs is subject to the requirements set forth in Article 28, paragraph 8, subsection (b) of the Regulations, thereby rendering ineffective the criterion that imposed a specific deadline for the execution of the sworn statement. Therefore, the availability of the deduction must be assessed in accordance with the regulations currently in force, rather than on the basis of the criterion set forth in Circular No. NAC-DGECCGC14-00004.<\/p>

Tax Department \u2013 Bustamante Fabara<\/strong><\/p>

\u00a0<\/p>

For further information, please contact us at:<\/p>

Diego Pino Roditti: dpino@bustamantefabara.com<\/a>
Sof\u00eda Gordillo: sgordillo@bustamantefabara.com<\/a><\/p>

\u00a0<\/strong><\/p>

\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDownload here<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Share the newsletter:<\/a><\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

More posts<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t
\"\"<\/div><\/a>\n\t\t\t\t
Legal Bulletin<\/div>\n\t\t\t\t
\n\t\t\t\t

\n\t\t\t\n\t\t\t\tNew SPDP Statement on the Obligation of Data Controllers or Processors Not Domiciled in Ecuador to Appoint a Data Protection Officer\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\n\t\t\n\t\t\tLeer m\u00e1s \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t
\"\"<\/div><\/a>\n\t\t\t\t
Legal Bulletin<\/div>\n\t\t\t\t
\n\t\t\t\t

\n\t\t\t\n\t\t\t\tSRI Clarifies Requirements for Substantiating Losses Arising from Inventory Write-Offs\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\n\t\t\n\t\t\tLeer m\u00e1s \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t
\"\"<\/div><\/a>\n\t\t\t\t
Legal Bulletin<\/div>\n\t\t\t\t
\n\t\t\t\t

\n\t\t\t\n\t\t\t\tAMENDING ORGANIC LAW OF THE ORGANIC ENVIRONMENTAL CODE\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\n\t\t\n\t\t\tLeer m\u00e1s \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

SRI Clarifies Requirements for Substantiating Losses Arising from Inventory Write-Offs Third Supplement to Official Gazette No. 372 | September 18, 2026 The Ecuadorian Internal Revenue<\/p>\n","protected":false},"author":14,"featured_media":15926,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-15923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bulletin"],"_links":{"self":[{"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/posts\/15923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/comments?post=15923"}],"version-history":[{"count":5,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/posts\/15923\/revisions"}],"predecessor-version":[{"id":15931,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/posts\/15923\/revisions\/15931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/media\/15926"}],"wp:attachment":[{"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/media?parent=15923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/categories?post=15923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bustamantefabara.com\/en\/wp-json\/wp\/v2\/tags?post=15923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}