Por: Ab. Gabriel Pinto Navarrete
Head of the Tax Department
The Director of the Internal Revenue Service, Econ. Damián Alberto Larco Guamán, has introduced significant changes in the income tax withholding percentages. According to Resolution No. NAC-DGERCGC24-00000008, these adjustments affect taxpayers who make payments or credit income constituting taxable income, thus impacting various economic sectors and professional activities.
This table summarizes the different tax withholding categories and the specific cases associated with each, providing a clear overview of the requirements and obligations in each situation:
Withholding Percentage | Description |
0% | - Interest paid to banks and other entities under the supervision of the Superintendency of Banks and the Popular and Solidarity Economy. - Transactions for settlement of purchases of goods and services for economic activities by private individuals deprived of liberty in reintegration programs. - Acquisitions of goods and services from taxpayers under the Simplified Regime RIMPE, with a pre-printed sales receipt. |
1% | - Interest and commissions on credit operations between banks and supervised entities. - Private passenger or cargo transport services. - Electric energy. - Acquisition of goods of agricultural, poultry, etc., origin in their natural state, directly from the producer. - Consideration for the transfer of non-listed rights. - Acquisitions from RIMPE taxpayers categorized as entrepreneurs. - Payments to insurance and reinsurance companies on the total amount of premiums. |
1.75% | - Acquisition of movable goods of a tangible nature. - Payments for construction activities, urbanization, subdivision, etc. - Acquisition of agricultural goods, etc., in their natural state from non-producer marketers. |
2% | - Services with a predominance of labor over intellectual factor. - Credit and debit card operations. - Income from interests, discounts, and financial returns. - Interests recognized by the public sector. - Transactions to individuals without a tax identification number (RUC) or with a suspended RUC. - Receipt of non-returnable PET plastic bottles. - Acquisition of mineral substances. - Payments to leasing companies on lease payments. |
2.75% | - Payments for invoices from media companies and advertising agencies. - Activities of national or foreign artists residing, to legal entities. |
3% | - Professional services by resident companies. - Commissions to national or foreign resident companies and permanent establishments. |
8% | - Activities of athletes, coaches, referees, etc., without an employment relationship. - Activities of national or foreign artists residing, to individuals. |
10% | - Fees, commissions, and payments for intellectual services. - Payments related to the use or exploitation of image or fame. - Teaching services. - Notary activities. - Payments related to intellectual property. - Gains from the transfer of listed rights. - Leasing of real estate. |
No specific percentage | - Payments not specifically contemplated, subject to a 2.75% withholding. |
Payments to non-residents | - 25% withholding for occasional services, excluding dividends. |
Non-applicable | - Exempt income or employment income. - Payments between financial entities and card issuers to payment aggregators/online markets. - Payments for fuel purchases. - Cases specifically exempt by tax regulations. |
Moment of Withholding | - At the time of payment or credit to the account, whichever occurs first. |
Withholding on Payments Abroad | - Verification of tax residence before applying treaties to avoid double taxation. |
Collection/Debit Agreements | - Financial entities as withholding agents in agreements with clients. |
Transitory Provision | - Withholding receipts issued up until March 30, 2024, for withholdings between March 1 and March 15, 2024. |
Do you need specialized tax advice?
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