Ecuador Income Tax

Ecuador Income Tax -- Personas Naturales / Self-Employed Skill v0.1

Tier 2 (research-verified). NOT yet accountant-verified. The 2026 PIT table is read verbatim from the official SRI Resolution NAC-DGERCGC25-00000043 PDF (high confidence). The 2025 table and several social-security / gastos-personales figures rely on Big-4 (PwC) and reputable Ecuadorian sources (JEZL, Russell Bedford, HLB Ecuador) rather than line-by-line re-extraction of the original SRI resolutions; those points carry inline [RESEARCH GAP — reviewer to confirm] markers. A licensed Ecuadorian contador/CPA must sign off before filing.

Section 1 -- Quick Reference

Quick Reference table

Field	Value
Country	Ecuador (República del Ecuador)
Tax	Impuesto a la Renta -- Personas Naturales (Personal Income Tax)
Currency	USD only -- Ecuador is officially dollarized; the US dollar is legal tender
Tax year	Calendar year (1 January -- 31 December)
Primary legislation	Ley de Régimen Tributario Interno (LRTI), art. 36 (PIT tables), art. 100 (late-filing fine)
Supporting legislation	Reglamento para la Aplicación de la LRTI; Código Tributario (art. 21 interest; sanciones); Ley de Seguridad Social (IESS); Código del Trabajo (13th/14th salary, fondos de reserva); RIMPE rules in LRTI
Tax authority	Servicio de Rentas Internas (SRI) -- https://www.sri.gob.ec
Social security authority	Instituto Ecuatoriano de Seguridad Social (IESS) -- https://www.iess.gob.ec
Minimum wage authority	Ministerio del Trabajo -- https://www.trabajo.gob.ec
Filing portal	SRI en línea
Annual PIT return	Formulario 102 / 102A (Personas Naturales)
Filing deadline	March of the following year, staggered by ninth digit of cédula/RUC (SRI)
Validated by	Pending -- requires sign-off by a licensed Ecuadorian contador/CPA
Validation date	Pending
Skill version	0.1

Tax Rate Brackets -- General Regime (Personas Naturales)

• PIT progressivity and indexation — PIT is progressive 0%-37% on net taxable income. The table is indexed annually to the urban CPI (INEC) at 30 November; the 2026 indexation was 1.0534712934405%. (LRTI art. 36; SRI Resolution NAC-DGERCGC25-00000043)

2025 (fiscal year filed March 2026) PIT brackets (SRI Resolution NAC-DGERCGC24-00000041, applies from 2025-01-01; exempt base USD 12,081. Source: SRI; JEZL Auditores; PwC. [RESEARCH GAP — reviewer to confirm the 2025 bracket figures line-by-line against the original 2024 SRI resolution PDF, which was binary-encoded.])

Net taxable income (USD)	Tax on base (USD)	Marginal rate	Cumulative tax at top
0 -- 12,081	0	0%	USD 0
12,081 -- 15,387	0	5%	USD 165
15,387 -- 19,978	165	10%	USD 624
19,978 -- 26,422	624	12%	USD 1,398
26,422 -- 34,770	1,398	15%	USD 2,650
34,770 -- 46,089	2,650	20%	USD 4,914
46,089 -- 61,359	4,914	25%	USD 8,731
61,359 -- 81,817	8,731	30%	USD 14,869
81,817 -- 108,810	14,869	35%	USD 24,316
108,810 +	24,316	37%	--

2026 (applies from 2026-01-01) PIT brackets (SRI Resolution NAC-DGERCGC25-00000043 (signed 2025-12-29); exempt base USD 12,208; confirmed verbatim from the official SRI PDF.)

Net taxable income (USD)	Tax on base (USD)	Marginal rate	Cumulative tax at top
0 -- 12,208	0	0%	USD 0
12,208 -- 15,549	0	5%	USD 167
15,549 -- 20,188	167	10%	USD 631
20,188 -- 26,700	631	12%	USD 1,412
26,700 -- 35,136	1,412	15%	USD 2,678
35,136 -- 46,575	2,678	20%	USD 4,965
46,575 -- 62,005	4,965	25%	USD 8,823
62,005 -- 82,679	8,823	30%	USD 15,025
82,679 -- 109,956	15,025	35%	USD 24,572
109,956 +	24,572	37%	--

• How to compute tax in any bracket — tax = (tax on base) + (net taxable income − bracket floor) × marginal rate. Then subtract the personal-expense rebate (see Section 1, Personal-Expense Rebate). Never compute tax directly in prose -- pass the chargeable figure to the deterministic engine.
• Non-residents flat rate — 25% percent (flat, on Ecuadorian-source income, withheld at source, NO brackets and NO personal allowance) (PwC Worldwide Tax Summaries -- Ecuador Individual)

IESS Social Security Contributions

• Materia gravada base definition — Base = materia gravada (salary + habitual remuneration: commissions, overtime, etc.). Floor = 1 SBU. No upper ceiling. (IESS Tasas de Aportación (as reported by EcuadorLegalOnline; misalario.ec). [RESEARCH GAP — the IESS official PDF was binary/unreadable; the 9.45% / 11.15% / 20.50% rates rely on EcuadorLegalOnline and misalario.ec, not the IESS document itself; fund-by-fund split (IVM/salud/riesgos/cesantía) not obtained — reviewer to confirm.])

Private-sector dependent worker contributions

Contribution	Payer	Rate	Base
Aporte personal (employee)	Employee	9.45%	materia gravada, floor 1 SBU, no ceiling
Aporte patronal (employer)	Employer	11.15%	same materia gravada
Total (private-sector dependent)	Employee + Employer	20.60%	(9.45% + 11.15%)

Other IESS situations

Situation	Payer	Rate	Notes
Afiliado voluntario / independiente (self-employed, no labour relationship)	Self (full amount)	20.50%	On declared income, floor 1 SBU; relevant for self-employed not under dependency
Public sector (reference only)	Worker 11.45% / State 9.15%	--	Split differs from private sector [RESEARCH GAP — reviewer to confirm]
Fondos de Reserva (Reserve Fund)	Employer	8.33%	Paid from the worker's 13th month of continuous service (= one month's pay / 12); monthly or accumulated at IESS at the worker's choice (Código del Trabajo)

Key Payroll / Benefit Items

Payroll / benefit items 2025/2026

Item	2025	2026	Source
Salario Básico Unificado (SBU / minimum wage)	USD 470.00/month	USD 482.00/month (Acuerdo Ministerial MDT-2025-195, from 2026-01-01)	Ministerio del Trabajo; NMS Law; CorralRosales
Décimo Tercer Sueldo (13th salary / Christmas bonus)	= 1/12 of total remuneration earned 1 Dec–30 Nov; paid by 24 Dec	same	EXEMPT from PIT; NOT part of IESS base (Código del Trabajo; PwC)
Décimo Cuarto Sueldo (14th salary / education bonus)	= 1 SBU (USD 470)	= 1 SBU (USD 482)	EXEMPT from PIT; paid by 15 Mar (Costa/Insular) or 15 Aug (Sierra/Amazonía) (Código del Trabajo)
IESS remittance deadline	within 15 days following the worked month	same	EcuadorLegalOnline

Personal-Expense Rebate (Rebaja por Gastos Personales)

• Rebate formula — rebate = 18% × the lesser of (a) declared documented personal expenses, or (b) the canasta cap (SRI; Russell Bedford; HLB Ecuador; Buró Tributario)

Canasta multiplier and caps by dependents

Dependents	Canasta multiplier	2025 cap (canasta USD 798.31)	2026 cap (canasta USD 821.80)
0 (base case)	7 canastas	≈ USD 5,588.17 → max rebate ≈ USD 1,005.87	≈ USD 5,752.60 → max rebate ≈ USD 1,035.47
1	9 canastas	[RESEARCH GAP — per-dependent USD cap for 2025 not extracted line-by-line]	≈ USD 7,396.20 (9 × 821.80)
2	11 canastas	[RESEARCH GAP]	≈ USD 9,039.80
3	14 canastas	[RESEARCH GAP]	≈ USD 11,505.20
4	17 canastas	[RESEARCH GAP]	≈ USD 13,970.60
5+	20 canastas	[RESEARCH GAP]	≈ USD 16,436.00

The canasta-multiplier structure (7/9/11/14/17/20) is sourced from HLB Ecuador for 2026; the same structure applies in 2025 with canasta USD 798.31 (Russell Bedford), but the exact per-dependent USD caps for 2025 were not extracted from an SRI boletín. Canasta básica = USD 798.31 (Jan 2025) and USD 821.80 (Jan 2026).

Conservative Defaults

Conservative Defaults table

Ambiguity	Default
Unknown regime (general vs RIMPE)	General-regime art. 36 table -- apply RIMPE ONLY if the individual is registered in RIMPE and within the revenue band (≤ USD 300,000)
Unknown residency	Treat as fiscally resident (worldwide income) ONLY if 183-day test met; otherwise flat 25% on Ecuadorian-source income
Unknown dependents for rebate	No-dependents case (7 canastas)
Unknown personal-expense documentation	Rebate = 18% of declared expenses (lesser value); 0 if no documented expenses
13th / 14th salaries	EXCLUDE from taxable income and from the IESS base
Self-employed not under labour dependency	Model IESS as the 20.50% voluntary/independent rate on declared income (min 1 SBU), NOT the 9.45/11.15 split
Unknown expense category	Not deductible
Unknown year	Use 2025 (current filing year, return due March 2026)

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

• Minimum viable inputs — Bank statement for the full tax year (CSV, PDF, or pasted text), plus confirmation of (a) residency (resident vs non-resident / 183-day test), (b) regime (general vs RIMPE), and (c) number of dependents (for the gastos-personales rebate).
• Recommended inputs — All facturas (sales and purchase invoices with RUC), IESS contribution / planilla records, prior-year Formulario 102, RUC registration showing regime, RIMPE category (Negocio Popular vs Emprendedor) if applicable.
• Ideal inputs — Complete income and expenditure account, Anexo de Gastos Personales (APS) detail with documented facturas by category (vivienda, salud, educación, alimentación, vestimenta, turismo), 13th/14th salary records, withholding certificates (comprobantes de retención).
• Refusal if minimum missing — SOFT WARN. No bank statement at all = hard stop. Bank statement without facturas = proceed with reviewer warning: "This Formulario 102 was produced from bank statement alone. The reviewer must verify that every deductible expense and every gasto personal claimed is supported by a valid factura with RUC, and that residency and regime are correctly determined."

Refusal Catalogue

• R-EC-1 -- Residency unknown — Residency determines the entire computation: residents are taxed on worldwide income at the progressive 0%-37% table; non-residents pay a flat 25% on Ecuadorian-source income with no allowance. This skill cannot compute tax without resolving the 183-day test. Please confirm before proceeding.
• R-EC-2 -- Companies / partnerships / sociedades — This skill covers natural persons (personas naturales) and self-employed individuals only. Sociedades, companies, and other legal entities file under the corporate regime (Impuesto a la Renta de Sociedades). Escalate to a licensed Ecuadorian contador.
• R-EC-3 -- Cross-border / treaty cases — Worldwide income, foreign tax credits, double-tax treaties, and CAN Decision 578 (Andean Community) require specialised analysis. Out of scope. Escalate to a licensed Ecuadorian contador.
• R-EC-4 -- Capital gains / property disposals / herencias — Gains on shares or real property, inheritance/gift tax, and asset disposals require separate analysis. Escalate to a licensed Ecuadorian contador.
• R-EC-5 -- Arrears / SRI enforcement — Client has outstanding tax arrears or is subject to SRI enforcement. Interest on mora is variable (Banco Central 90-day reference rate, set quarterly) and a 20% recargo applies where the SRI detects the omission. Do not advise. Escalate immediately.
• R-EC-6 -- IVA return requested — This skill covers income tax (Formulario 102/102A) only. For Ecuador IVA, use the ecuador-iva skill.

Section 3 -- Transaction Pattern Library

This is the deterministic pre-classifier. When a bank-statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement (Spanish terms common in Ecuadorian statements). If multiple patterns match, use the most specific. If none match, fall through to Tier 1.

3.1 Income Patterns (Credits / Créditos on Bank Statement)

Income patterns table

Pattern	Treatment	Notes
Client name + TRANSFERENCIA, DEPOSITO, PAGO RECIBIDO, ABONO	Business income (renta gravada)	If IVA-registered, extract net (excl. 15% IVA)
HONORARIOS, FACTURA, SERVICIOS PROFESIONALES, CONSULTORIA	Professional fees -- business income	Typical for self-employed professionals
STRIPE PAYOUT, PAYPAL, WISE, PAYONEER	Platform payout -- business income	Match to underlying facturas; net of platform commission
UPWORK, FIVERR, FREELANCER	Freelance platform -- business income	Net of platform commission
SUELDO, ROL DE PAGOS, NOMINA, EMPLEADOR [name]	Employment income (renta del trabajo en relación de dependencia)	NOT self-employment; net of IESS 9.45% and excludes 13th/14th
ARRIENDO RECIBIDO, ALQUILER	Rental income	Reported separately (renta de capital)
INTERESES, RENDIMIENTOS	Investment income	Interest / yield
DIVIDENDOS	Investment income	Dividend income
DEVOLUCION SRI, NOTA DE CREDITO SRI	EXCLUDE -- not income	Tax refund from prior period
DECIMO TERCERO, DECIMO CUARTO	EXCLUDE -- exempt	13th/14th salaries are PIT-exempt
FONDOS DE RESERVA	EXCLUDE from taxable income	Reserve fund payout [RESEARCH GAP — confirm PIT treatment with reviewer]

3.2 Expense Patterns (Debits) -- Deductible Business Costs (self-employed / professional)

Deductible business costs table

Pattern	Category	Treatment	Notes
ARRIENDO OFICINA, ALQUILER LOCAL	Office rent	Deductible	Must have factura with RUC
HONORARIOS CONTADOR, AUDITORIA, ASESORIA	Accountancy / professional fees	Deductible
HONORARIOS ABOGADO, NOTARIA (business)	Legal fees	Deductible	Must be business-related
SUMINISTROS, PAPELERIA, UTILES DE OFICINA	Office supplies	Deductible
PUBLICIDAD, MARKETING, GOOGLE ADS, META ADS	Marketing / advertising	Deductible
CAPACITACION, CURSO, SEMINARIO, CONFERENCIA	Training	Deductible	Must relate to current activity
COMISIONES BANCARIAS, MANTENIMIENTO CUENTA	Bank charges	Deductible	Business account only
STRIPE FEE, PAYPAL FEE, COMISION PLATAFORMA	Payment-processing fees	Deductible
HOSTING, DOMINIO, AWS, GOOGLE CLOUD, SOFTWARE	IT infrastructure / SaaS	Deductible (recurring); capitalise if a long-lived asset

3.3 Expense Patterns (Debits) -- Utilities (may need apportionment)

Utilities patterns table

Pattern	Category	Tier	Notes
EMPRESA ELECTRICA, CNEL, LUZ, AGUA EPMAPS	Electricity / water	T2 if home office	100% if dedicated office; apportion if home-based
CLARO, MOVISTAR, CNT, TUENTI	Telecoms / internet / mobile	T2	Business-use portion only; default 0% if mixed

3.4 Expense Patterns (Debits) -- Travel

Travel patterns table

Pattern	Category	Treatment	Notes
LATAM, AVIANCA, EQUAIR, BOLETO AEREO	Flights	Deductible if business travel	Must be wholly business purpose
HOTEL, HOSPEDAJE, BOOKING.COM, AIRBNB	Accommodation	Deductible if business travel
UBER, CABIFY, DIDI, TAXI	Local transport	Deductible if business purpose
COMBUSTIBLE, GASOLINA, PRIMAX, PETROECUADOR	Vehicle fuel	T2 -- business % only	Requires mileage log
PARQUEADERO, PEAJE	Parking / tolls	T2 -- business % only

3.5 Expense Patterns (Debits) -- Gastos Personales (feed the rebate, NOT business expense)

These do not reduce business profit; they feed the rebaja por gastos personales (18% of the lesser value -- Section 1). Must have facturas with the taxpayer's RUC/cédula.

Gastos personales patterns table

Pattern	Gasto-personal category	Notes
ARRIENDO VIVIENDA, HIPOTECA (interés), PREDIO	Vivienda (housing)	Personal residence
CLINICA, FARMACIA, MEDICO, SEGURO SALUD	Salud (health)
COLEGIO, UNIVERSIDAD, MATRICULA, PENSION ESCOLAR	Educación (education)
SUPERMERCADO, MERCADO, ALIMENTOS	Alimentación (food)	Documented food spend
ROPA, CALZADO, VESTIMENTA	Vestimenta (clothing)
TURISMO, HOTEL (personal), AGENCIA DE VIAJE	Turismo (tourism)

3.6 Expense Patterns (Debits) -- NOT Deductible / Exclude

Not deductible patterns table

Pattern	Treatment	Notes
MULTA, SANCION, INTERES POR MORA	NOT deductible	Fines/penalties -- public policy
PAGO SRI, IMPUESTO A LA RENTA	NOT deductible	Income tax cannot reduce income
RETIRO PERSONAL, CONSUMO PERSONAL, CAJERO (personal)	NOT deductible	Drawings / private spend
DONACION (non-qualifying)	NOT deductible	Unless qualifying under LRTI [RESEARCH GAP — reviewer to confirm]

3.7 Exclusions (Neither Income nor Business Expense)

Exclusions table

Pattern	Treatment	Notes
TRANSFERENCIA ENTRE CUENTAS PROPIAS, CUENTA AHORRO	EXCLUDE	Own-account transfer
PAGO PRESTAMO, CUOTA CREDITO (principal)	EXCLUDE (principal)	Loan principal movement; interest may be deductible if business
APORTE IESS, PLANILLA IESS	Treated as IESS contribution	Deductible from employment income (9.45%) or self-employed base, NOT a business cost line
PAGO IVA, FORMULARIO 104	EXCLUDE	IVA liability payment, not an expense
ANTICIPO IMPUESTO RENTA, RETENCION EN LA FUENTE	Credit against liability	Withholding/advance -- not an expense

3.8 Ecuadorian Banks -- Statement Format Reference

Banks statement format reference table

Bank	Common Patterns	Notes
Banco Pichincha	TRANSFERENCIA, DEBITO, NOTA DE DEBITO, COMISION	PDF/Excel; date format DD/MM/YYYY
Banco Guayaquil	TRANSFERENCIA, PAGO, DEBITO AUTOMATICO	PDF/CSV
Banco del Pacífico	TRANSFERENCIA, DEPOSITO, RETIRO	PDF
Produbanco	TRANSFERENCIA, DEBITO, COMISION	PDF/CSV
Banco Internacional	TRANSFERENCIA, PAGO, CARGO	PDF

Section 4 -- Worked Examples

All amounts in USD (Ecuador is dollarized). Tax figures use the 2025 general-regime table unless noted.

Example 1 -- Self-Employed Professional Fee (Income)

Input line: 15/03/2025 ; PICHINCHA ; TRANSFERENCIA RECIBIDA ; ACME CIA LTDA ; HONORARIOS FACTURA 001-001-000234 ; +1,150.00 ; USD

Reasoning: Professional fee. If the professional is IVA-registered, USD 1,150 includes 15% IVA → net = USD 1,000 (renta gravada); USD 150 is IVA collected (a liability to the SRI, excluded from income). If not IVA-registered, the full USD 1,150 is income.

Classification: Renta gravada = USD 1,000 (IVA-registered) or USD 1,150 (not registered). IVA USD 150 excluded.

Example 2 -- Self-Employed Annual PIT with Rebate (2025)

Input: Resident professional, net taxable income (after deductible business costs and IESS) = USD 30,000. Documented personal expenses ≥ the cap, no dependents.

Reasoning:

• USD 30,000 falls in the 26,422–34,770 bracket (15%).
• Tax = 1,398 + (30,000 − 26,422) × 15% = 1,398 + 3,578 × 0.15 = 1,398 + 536.70 = USD 1,934.70.
• Personal-expense rebate (no dependents): 18% × min(declared expenses, 7 canastas = 5,588.17) = 5,588.17 × 0.18 = USD 1,005.87.
• Tax after rebate = 1,934.70 − 1,005.87 = USD 928.83.

Classification: Impuesto causado USD 1,934.70; rebaja USD 1,005.87; tax due USD 928.83 (before withholding credits).

Example 3 -- Employee Monthly IESS Withholding (2025)

Input line: 30/04/2025 ; GUAYAQUIL ; ROL DE PAGOS ; EMPLEADOR XYZ SA ; SUELDO ABRIL ; +1,358.25 ; USD

Reasoning: Gross monthly salary USD 1,500. Employee IESS aporte personal = 9.45% × 1,500 = USD 141.75. Net deposited to the worker = 1,500 − 141.75 = USD 1,358.25 (before any PIT withholding). The 13th/14th salaries are paid separately and are exempt; they are NOT part of the IESS base.

Classification: IESS employee USD 141.75; taxable employment base (this month) USD 1,358.25 before PIT withholding.

Example 4 -- Non-Resident Ecuadorian-Source Fee

Input line: 10/06/2025 ; PICHINCHA ; TRANSFERENCIA ; CLIENTE EC ; SERVICIOS PRESTADOS EN ECUADOR ; +10,000.00 ; USD

Reasoning: Payee is a non-resident (183-day test NOT met). Ecuadorian-source income is taxed at a flat 25% withheld at source, with no brackets and no personal allowance (PwC). Tax = 10,000 × 25% = USD 2,500.

Classification: Flat 25% non-resident withholding = USD 2,500. No rebate, no table.

Example 5 -- RIMPE Negocio Popular (Small Self-Employed)

Input: Resident natural person, gross annual revenue USD 18,000, registered in RIMPE as Negocio Popular.

Reasoning: Negocio Popular ceiling is gross annual income ≤ USD 20,000 (SRI RIMPE; JEZL). Negocios Populares pay a fixed-fee table (USD 0 / 5 / 15 / 35 / 60 across revenue bands), not the progressive PIT table. [RESEARCH GAP — the exact band thresholds mapping revenue to each fixed fee were not extracted from the SRI RIMPE resolution; reviewer to confirm which fixed fee applies to USD 18,000.] RIMPE income tax is declared in May of the following year (SRI Boletín NAC-COM-25-0020).

Classification: RIMPE Negocio Popular fixed fee (USD 0/5/15/35/60) -- exact figure pending reviewer confirmation of the band. NOT the art. 36 table.

Example 6 -- IESS for Self-Employed Voluntary Affiliate

Input line: 05/02/2025 ; PRODUBANCO ; DEBITO ; IESS ; APORTE VOLUNTARIO ENERO ; -96.35 ; USD

Reasoning: Self-employed individual not under labour dependency is a voluntary/independent IESS affiliate at 20.50% on declared income, minimum 1 SBU (USD 470 in 2025), paid entirely by the individual. On the SBU floor: 470 × 20.50% = USD 96.35/month.

Classification: IESS voluntary contribution USD 96.35 (on SBU floor). Deductible from the self-employed's income base, not a business expense line.

Example 7 -- Own-Account Transfer (Exclude)

Input line: 15/05/2025 ; PICHINCHA ; TRANSFERENCIA ENTRE CUENTAS PROPIAS ; AHORRO ; ; -2,000.00 ; USD

Reasoning: Transfer between the taxpayer's own accounts. Neither income nor expense. Exclude entirely.

Classification: EXCLUDE.

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 Progressive PIT, Exempt Base and Filing Obligation

• Exempt base and filing obligation — PIT is progressive 0%-37% on net taxable income (LRTI art. 36). The 2025 exempt base is USD 12,081 (SRI Resolution NAC-DGERCGC24-00000041); 2026 is USD 12,208 with the top 37% bracket starting at USD 109,956 (SRI Resolution NAC-DGERCGC25-00000043). Filing obligation: natural persons with gross income above the exempt base (USD 12,081 for 2025, ≈ USD 1,006.75/month) must file the annual return EVEN IF the rebate reduces tax to zero (SRI; Primicias). (LRTI art. 36; SRI Resolution NAC-DGERCGC24-00000041; SRI Resolution NAC-DGERCGC25-00000043; SRI; Primicias)

5.2 Taxable Employment Income

• Taxable employment income definition — Taxable employment income = total labour compensation NET of employee IESS contributions (9.45%), and EXCLUDING the 13th (Christmas) and 14th (education) salaries, which are exempt. Employers compute monthly PIT withholding on projected annual taxable income (salary net of IESS, excluding 13th/14th) using the art. 36 table, less the projected personal-expense rebate, reconciled annually. (LRTI; Código del Trabajo; PwC; Reglamento LRTI)

5.3 Personal-Expense Rebate (Rebaja por Gastos Personales)

• Rebate formula — rebate = 18% × the lesser of (a) declared documented personal expenses, or (b) the canasta cap. Cap = 7 canastas with no dependents, scaling to 9/11/14/17/20 canastas for 1/2/3/4/5+ dependents. Canasta básica = USD 798.31 (Jan 2025) and USD 821.80 (Jan 2026). All gastos personales must be backed by facturas with the taxpayer's RUC/cédula. See Section 1 for the full multiplier table and [RESEARCH GAP] markers on the 2025 per-dependent caps. (SRI; Russell Bedford; HLB Ecuador)

5.4 Residency and Worldwide Income

• Residency trigger and effects — Tax residency triggers at 183 days (consecutive or not) in a fiscal year, OR 183+ days over 12 months spanning two fiscal periods. Residents are taxed on worldwide income with a foreign tax credit (pay the Ecuadorian excess if Ecuador's rate is higher). Non-residents pay only on Ecuadorian-source income at a flat 25% withheld at source. (SRI; LRTI art. 4.1; Russell Bedford)

5.5 IESS Contributions

IESS contributions summary table

Worker type	Employee	Employer	Total	Base
Private-sector dependent	9.45%	11.15%	20.60%	materia gravada, floor 1 SBU, no ceiling
Self-employed voluntary/independent	20.50% (self)	--	20.50%	declared income, floor 1 SBU

• Fondos de Reserva and remittance deadline — Employer must also pay Fondos de Reserva at 8.33% of remuneration from the worker's 13th month of continuous service (Código del Trabajo). IESS contributions are remitted within 15 days following the worked month (EcuadorLegalOnline). [RESEARCH GAP — IESS official PDF unreadable; rates per EcuadorLegalOnline / misalario.ec.] (Código del Trabajo; EcuadorLegalOnline)

5.6 13th and 14th Salaries

• Décimo Tercer Sueldo — = 1/12 of total remuneration earned 1 Dec–30 Nov; paid by 24 Dec. EXEMPT from PIT; NOT in IESS base. (Código del Trabajo; PwC; EcuadorLegalOnline)
• Décimo Cuarto Sueldo — = 1 SBU (USD 470 in 2025; USD 482 in 2026); paid by 15 Mar (Costa/Insular) or 15 Aug (Sierra/Amazonía). EXEMPT from PIT. (Código del Trabajo; PwC; EcuadorLegalOnline)

5.7 Non-Deductible Expenses

Non-deductible expenses table

Expense	Reason
Fines, penalties, interés por mora	Public policy
Income tax itself	Tax on income
Drawings / personal consumption	Not a business expense
Personal expenses (except via the gastos-personales rebate)	Private living costs feed the rebate, not business profit

5.8 RIMPE Simplified Regime (Small Self-Employed)

RIMPE categories table

RIMPE category	Revenue band (gross annual)	Tax treatment
Negocio Popular	≤ USD 20,000	Fixed-fee table: USD 0 / 5 / 15 / 35 / 60 across bands [RESEARCH GAP — exact band thresholds to confirm]
Emprendedor	USD 20,000.01 – 300,000	0%-2% marginal on gross income

• RIMPE filing timing and applicability — RIMPE income tax is declared in May of the following year (e.g. 2025 RIMPE return due May 2026), by ninth digit. Apply RIMPE ONLY if the taxpayer is registered in RIMPE and within the band. (SRI RIMPE; JEZL; Bloomberg Línea; Primicias)

5.9 IVA Interaction

IVA interaction table

Scenario	Income Tax Treatment
IVA collected on sales (registered)	NOT income -- exclude from renta gravada
Input IVA recovered (crédito tributario)	NOT an expense -- exclude
Input IVA not recoverable	IS a cost -- include gross

[RESEARCH GAP — current IVA standard rate is 15%; confirm in the ecuador-iva skill before applying to net-of-IVA extractions.]

5.10 Filing Deadlines and Penalties

Filing deadlines and penalties table

Item	Detail
Formulario 102/102A (annual PIT)	March of the following year, staggered by ninth digit of cédula/RUC (see Section 6)
Anexo de Gastos Personales (APS)	February of the following year, when personal expenses exceed 50% of the exempt base
RIMPE income tax	May of the following year
Late-filing fine (tax due)	3% of tax due per month or fraction, capped at 100% of the tax (LRTI art. 100)
Late-filing fine (no tax due but income exists)	0.1% per month/fraction of gross income / sales, with statutory cap (LRTI art. 100)
Interest on overdue tax (interés por mora)	Banco Central 90-day reference rate, set quarterly; 1.3× that rate where SRI notifies non-filing before voluntary correction (Código Tributario art. 21) [RESEARCH GAP — variable rate, no fixed %]
Recargo on omitted tax detected by SRI	20% of the omitted tax, in addition to fine and interest (Código Tributario)
Failure to file Anexo de Gastos Personales	Sanción pecuniaria per SRI sanctions schedule (SRI Preguntas frecuentes sanciones)

Section 6 -- Filing Calendar (Ninth Digit of Cédula/RUC)

Annual PIT (Formulario 102/102A) for fiscal 2025 is due in March 2026, staggered by the ninth digit of the cédula/RUC (SRI; Primicias):

Filing calendar by ninth digit (SRI; Primicias)

Ninth digit	Deadline (March, following year)
1	10 Mar
2	12 Mar
3	14 Mar
4	16 Mar
5	18 Mar
6	20 Mar
7	22 Mar
8	24 Mar
9	26 Mar
0	28 Mar

Special taxpayers (contribuyentes especiales) up to 11 Mar; Galápagos up to 28 Mar. The Anexo de Gastos Personales is filed in February (same ninth-digit staggering). The Proyección de Gastos Personales (Formulario GP) is filed with the employer at year-start (Jan/Feb) to lower monthly withholding (SRI Boletín NAC-COM-25-006).

Section 7 -- Tier 2 Catalogue (Reviewer Judgement Required)

7.1 Home Office Apportionment

• Home office apportionment — For a self-employed person working from home, apportion electricity, water, internet, rent to the business-use proportion. Must have facturas with RUC. Conservative default: 0% deduction until reviewer confirms the apportionment basis.

7.2 Motor Vehicle Business Use

• Motor vehicle business use — Only the business-use percentage of fuel, insurance, maintenance is deductible; requires a mileage log. Conservative default: 0% business use until a log is provided.

7.3 Phone / Internet Mixed Use

• Phone/internet mixed use — Business-use portion only. Conservative default: 0% deduction until business percentage confirmed.

7.4 Gastos Personales Documentation and Dependents

• Gastos personales documentation and dependents — The rebate depends on documented facturas by category and on the number of dependents (drives the canasta multiplier). Flag for reviewer to confirm dependents and that each factura carries the taxpayer's RUC/cédula and falls in an allowed category. [RESEARCH GAP — 2025 per-dependent caps to confirm.]

7.5 Regime Choice (General vs RIMPE)

• Regime choice — Confirm RUC registration and revenue band. RIMPE is mandatory/elective per the taxpayer's registration; do not assume. Flag for reviewer where revenue is near the USD 20,000 (Negocio Popular) or USD 300,000 (Emprendedor) thresholds.

7.6 Foreign Income and Treaty Relief (Residents)

• Foreign income and treaty relief — Worldwide income with foreign tax credit; treaty relief and CAN Decision 578 may apply. Flag for reviewer in any cross-border case.

Section 8 -- Excel Working Paper Template

ECUADOR INCOME TAX -- FORMULARIO 102/102A WORKING PAPER
Tax Year: 2025
Client: ___________________________
Cédula/RUC (ninth digit): _____   Residency: Resident / Non-resident (183-day test)
Regime: General / RIMPE Negocio Popular / RIMPE Emprendedor
Dependents (for rebate): _____

A. INGRESOS GRAVADOS (TAXABLE INCOME)
  A1. Honorarios / professional fees (net of IVA if registered)  ___________
  A2. Platform payouts (Stripe, PayPal, etc.)                    ___________
  A3. Employment income (net of IESS 9.45%, excl. 13th/14th)     ___________
  A4. Other taxable income (rental, interest, dividends)         ___________
  A5. TOTAL ingresos gravados                                    ___________

B. DEDUCCIONES (self-employed business costs)
  B1. Office rent / arriendo                                     ___________
  B2. Professional / accountancy / legal fees                    ___________
  B3. Supplies, marketing, training                              ___________
  B4. Bank & payment-processing fees                             ___________
  B5. Travel (business %)                                        ___________
  B6. Utilities / telecoms (business %)                          ___________
  B7. IESS contributions (self-employed)                         ___________
  B8. Other deductible costs                                     ___________
  B9. TOTAL deducciones                                          ___________

C. BASE IMPONIBLE (A5 - B9)                                      ___________

D. IMPUESTO CAUSADO (apply art. 36 table to C)
  D1. Tax on base + marginal (per bracket)                       ___________

E. REBAJA POR GASTOS PERSONALES
  E1. Declared documented personal expenses                      ___________
  E2. Canasta cap (7/9/11/14/17/20 canastas by dependents)       ___________
  E3. Rebate = 18% x min(E1, E2)                                 ___________

F. IMPUESTO A PAGAR (D1 - E3)                                    ___________
  F1. Less: retenciones en la fuente / withholding               ___________
  F2. Less: anticipo / advance paid                               ___________
  F3. SALDO A PAGAR / (a favor)                                  ___________

REVIEWER FLAGS:
  [ ] Residency (183-day test) confirmed?
  [ ] Regime (general vs RIMPE) confirmed against RUC?
  [ ] Dependents confirmed for canasta multiplier?
  [ ] 13th/14th salaries excluded from income and IESS base?
  [ ] IESS modelled correctly (9.45/11.15 dependent vs 20.50 voluntary)?
  [ ] All gastos personales backed by facturas with RUC?
  [ ] All business deductions backed by facturas with RUC?
  [ ] Non-resident flat 25% applied where 183-day test not met?
  [ ] 2025 bracket figures verified against original SRI resolution?

Section 9 -- Bank Statement Reading Guide

Ecuadorian Bank Statement Formats

Bank statement formats table

Bank	Format	Key Fields	Notes
Banco Pichincha	PDF, Excel	Fecha, Descripción, Débito, Crédito, Saldo	Most common; description holds counterparty + reference
Banco Guayaquil	PDF, CSV	Fecha, Concepto, Valor, Saldo
Banco del Pacífico	PDF	Fecha, Detalle, Retiro, Depósito
Produbanco	PDF, CSV	Fecha, Descripción, Débito, Crédito
Banco Internacional	PDF	Fecha, Concepto, Cargo, Abono

Key Spanish Banking / Tax Terms

Spanish banking/tax terms table

Term	English	Classification Hint
TRANSFERENCIA / TRF	Transfer	Check direction for income/expense
DÉBITO AUTOMÁTICO	Direct debit	Regular expense (utility, subscription)
DEPÓSITO / ABONO	Deposit / credit	Potential income
RETIRO / CAJERO	Withdrawal / ATM	Ask what cash was spent on
COMISIÓN / MANTENIMIENTO	Bank charge	Deductible (business account)
INTERESES	Interest	Interest income or bank charge
HONORARIOS	Professional fees	Business income (self-employed)
ROL DE PAGOS / SUELDO / NÓMINA	Payroll / salary	Employment income (net of IESS)
APORTE IESS / PLANILLA	Social security	IESS contribution
DÉCIMO TERCERO / CUARTO	13th / 14th salary	EXEMPT -- exclude
FONDOS DE RESERVA	Reserve fund	Excluded from taxable income
RETENCIÓN EN LA FUENTE	Withholding at source	Credit against liability
ANTICIPO	Advance tax	Credit against liability
FACTURA	Invoice (with RUC)	Supports income or deduction

Section 10 -- Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING -- reviewer must confirm".
3. Apply conservative defaults (Section 1).
4. Generate the working paper (Section 8) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS -- ECUADOR INCOME TAX
1. Residency: were you physically in Ecuador 183+ days this year (or over 12 months across two periods)?
2. Regime: general regime, or registered in RIMPE (Negocio Popular ≤ USD 20,000 / Emprendedor ≤ USD 300,000)?
3. Status: self-employed/professional, employee, or both?
4. Dependents: how many (for the gastos-personales rebate)?
5. Gastos personales: do you have facturas (with your RUC/cédula) for vivienda, salud, educación, alimentación, vestimenta, turismo? Approximate total?
6. IESS: are you a dependent worker (9.45% withheld) or a voluntary/independent affiliate (20.50%)?
7. Home office: dedicated space or shared? If apportioning, what %?
8. Vehicle: business use? % and mileage log?
9. Phone/internet: business %?
10. Withholding/anticipo: total retenciones en la fuente and advances paid this year?
11. Any foreign-source income (residents only)?

Section 11 -- Reference Material

Key Legislation / Authority References

Key legislation/authority references table

Topic	Reference
PIT tables (progressive 0%-37%)	LRTI art. 36; SRI Resolutions NAC-DGERCGC24-00000041 (2025), NAC-DGERCGC25-00000043 (2026)
Late-filing fine	LRTI art. 100
Interest on mora; recargo; sanciones	Código Tributario art. 21
IESS contributions	Ley de Seguridad Social; IESS Tasas de Aportación
13th/14th salary; fondos de reserva	Código del Trabajo
RIMPE	LRTI (Régimen Simplificado para Emprendedores y Negocios Populares); SRI RIMPE
Residency (183 days)	LRTI art. 4.1; SRI
Minimum wage (SBU)	Ministerio del Trabajo; Acuerdo Ministerial MDT-2025-195 (2026)
Annual return	Formulario 102 / 102A (SRI)

Primary Sources

• Resolución NAC-DGERCGC25-00000043 -- Tabla Impuesto a la Renta Personas Naturales 2026 (official PDF), SRI: https://www.sri.gob.ec/o/sri-portlet-biblioteca-alfresco-internet/descargar?id=bb7aac3c-251d-4243-9477-10a3ba8e7355&nombre=NAC-DGERCGC25-00000043.pdf
• Impuesto a la Renta -- quiénes declaran y calendario por noveno dígito, SRI: https://www.sri.gob.ec/en/impuesto-renta
• Régimen Simplificado para Emprendedores y Negocios Populares (RIMPE), SRI: https://www.sri.gob.ec/en/rimpe
• Ecuador -- Individual -- Taxes on personal income, PwC Worldwide Tax Summaries: https://taxsummaries.pwc.com/ecuador/individual/taxes-on-personal-income
• Tabla de impuesto a la renta (IR) 2026, 2025 -- Personas Naturales, JEZL Auditores: https://www.jezl-auditores.com/index.php/tributario/101-tabla-de-impuesto-a-la-renta-ir-2026-2025-personas-naturales-ecuador
• Régimen Impositivo RIMPE -- tablas Negocios Populares y Emprendedores, JEZL: https://www.jezl-auditores.com/index.php/tributario/152-regimen-impositivo-rimpe
• Aporte personal al IESS (9.45% / 11.15% / 20.5%), EcuadorLegalOnline: https://www.ecuadorlegalonline.com/laboral/aporte-personal-iess/
• Tabla Aportes IESS Ecuador, misalario.ec (WageIndicator): https://misalario.ec/tabla-aportes-iess-ecuador/
• Salario básico unificado 2026 (USD 482, Acuerdo MDT-2025-195), NMS Law: https://nmslaw.com.ec/blog/2025/12/22/ecuador-salario-basico-unificado-2026/
• Gastos personales 2026 (canastas table + USD 821.80), HLB Ecuador: https://www.hlbecuador.com/gastos-personales-2026-el-limite-que-define-la-rebaja-del-impuesto-a-la-renta/
• Anexo de Gastos Personales 2025 (canasta USD 798.31, 18% formula), Russell Bedford Ecuador: https://russellbedford.com.ec/anexo-de-gastos-personales-2025-ecuador-rebaja-del-impuesto-a-la-renta/
• Multas e intereses por mora (3% mensual, recargo 20%), Primicias: https://www.primicias.ec/economia/impuesto-renta-sri-multas-intereses-91745/
• Residencia Fiscal de Extranjeros en Ecuador: Guía 2025 (183-day test), Russell Bedford: https://russellbedford.com.ec/residencia-fiscal-de-extranjeros-en-ecuador-guia-2025/

Test Suite

Test 1 -- Self-employed, mid-range income, full rebate (2025). Input: Resident, net taxable income USD 30,000, no dependents, documented personal expenses ≥ cap. Expected: Impuesto causado = 1,398 + (30,000 − 26,422) × 15% = USD 1,934.70. Rebate = 5,588.17 × 18% = USD 1,005.87. Tax due = USD 928.83.

Test 2 -- Income at the exempt base (2025). Input: Resident, net taxable income USD 12,081. Expected: USD 0 tax (top of the 0% band). Filing still REQUIRED because gross income reaches the threshold.

Test 3 -- Top bracket entry (2026). Input: Resident, net taxable income USD 109,956. Expected: Cumulative tax = USD 24,572 at the start of the 37% band (next dollar taxed at 37%).

Test 4 -- Non-resident flat 25%. Input: Non-resident, Ecuadorian-source income USD 10,000. Expected: Tax = 10,000 × 25% = USD 2,500. No table, no rebate.

Test 5 -- Employee monthly IESS (2025). Input: Gross monthly salary USD 1,500, private-sector dependent worker. Expected: Employee IESS = 1,500 × 9.45% = USD 141.75; employer IESS = 1,500 × 11.15% = USD 167.25; total IESS = USD 309.00 (20.60%).

Test 6 -- Self-employed voluntary IESS on SBU floor (2025). Input: Voluntary/independent affiliate at the SBU floor (USD 470). Expected: Monthly contribution = 470 × 20.50% = USD 96.35.

Test 7 -- RIMPE band check. Input: Resident, gross annual revenue USD 250,000. Expected: Within the Emprendedor band (USD 20,000.01–300,000); taxed 0%-2% marginal on gross under RIMPE if registered -- NOT the art. 36 table.

PROHIBITIONS

• NEVER apply the progressive table without confirming residency -- non-residents pay a flat 25% with no allowance
• NEVER compute the impuesto causado in prose -- pass the base imponible to the deterministic engine
• NEVER include the 13th or 14th salary in taxable income or in the IESS base
• NEVER apply the 9.45/11.15 split to a self-employed person not under labour dependency -- use 20.50% voluntary
• NEVER allow fines, penalties, interés por mora, or income tax itself as a deduction
• NEVER include IVA collected on sales in renta gravada for IVA-registered taxpayers
• NEVER claim a gasto personal or business deduction without a factura carrying the taxpayer's RUC/cédula
• NEVER exceed the canasta cap on the personal-expense rebate -- it is 18% of the LESSER value
• NEVER apply RIMPE unless the taxpayer is registered in RIMPE and within the revenue band
• NEVER present a figure marked [RESEARCH GAP] as confirmed -- escalate to the reviewer
• NEVER present tax calculations as definitive -- always label as estimated

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