08 September 2020 Ecuador requires certain taxpayers to pay all estimated income taxes for tax year 2020 by September 11, 2020 To assist with COVID-19 relief efforts, the Ecuadorian President ordered certain taxpayers to pay estimated income taxes for fiscal-year 2020, rather than paying the entire tax by the April 2021 deadline. Affected taxpayers may pay their entire tax by September 11, 2020. In another decree (Executive Decree 1137), Ecuador's President has required certain taxpayers to pay all their estimated income taxes for tax year 2020 on or before September 11, 2020.
Considering the observations and findings of the Constitutional Court, the President issued another decree requiring certain taxpayers to pay all estimated taxes for tax year 2020 on or before September 11, 2020, instead of in April 2021. Unlike the previous decree, the new decree provides an explanation and detailed description of the amount of income required to cover the expenses resulting from the pandemic. It also explains that this measure will be exclusively used to cover the expenses related to the health and sanitary needs of the COVID-19 pandemic. Through Executive Decree 1137, the Ecuadorian President ordered individuals and companies, including permanent establishments of foreign companies, to pay estimated income taxes for tax year 2020 if they:
Taxpayers should make the estimated income tax payment on or before September 11, 2020. Payments made beyond that date will be subject to interest. Taxpayers may not request an installment payment agreement for the estimated tax payment. Taxpayers may voluntarily pay estimated income taxes on or before September 11, 2020. Taxpayers may also pay more estimated income tax than they owe. Taxpayers voluntarily paying estimated income taxes will be entitled to interest on their estimated payments, with interest running from the date the voluntary payment was made to the due date of the income tax payment. The Internal Revenue Service will publish on its website the details of the amounts paid voluntarily and the names of those taxpayers.
Document ID: 2020-2186 | |||||||||||||||||||||||