Ecuador Gazettes Resolution Establishing Rules for Income Tax, VAT Withholding for Online Payment Aggregators

The Ecuadorian Official Gazette May 28 published Resolution No. NAC-DGERCGC21-00000026, establishing income tax and VAT withholding rules on payments made through online payment aggregators and online marketplaces. The resolution includes measures: 1) establishing the requirements for an entity to be considered a payment aggregator; 2) prohibiting income tax and VAT withholding on payments by credit and debit card-issuing entities to payment aggregators or third parties; 3) allowing the monthly payment of withholding taxes in the form established by the tax agency; and 4) allowing partnerships considered payment aggregators to act as retention agents of their own income for VAT transactions ...