Ecuador's Internal Revenue Service (SRI) has published Resolution No. NAC-DGERCGC23-00000025 of 13 September 2023, which amends Resolution No. NAC-DGERCGC15-00000455 and Resolution No. NAC-DGERCGC16-00000532 in regard to the transfer pricing annex on related party operations (transactions) and the comprehensive transfer pricing report. Most of the amendments are made to Resolution No. NAC-DGERCGC15-00000455, including the amendment of the scope of taxpayers subject to the transfer pricing annex and report submission requirements:
Other amendments to Resolution No. NAC-DGERCGC15-00000455 concern the operations that are excluded in determining the total amount of related party operations for the submission requirements. Aside from the addition of one operation type, these amendments are largely editorial and clarify the operations that are excluded. The added operation type is "Liability operations, except for those that correspond to loans contracted in the fiscal period being reported".
Amendments are also made in regard to the submission of the comprehensive transfer pricing report, including that the report must be submitted through the channels made available to taxpayers by the SRI on informed on the SRI website, www.sri.gob.ec. In any case, the text of the report must be presented in a digital file in PDF-text format, along with a letter signed by the taxpayer declaring that the information provided does not contain false or erroneous data. It is also added that the comprehensive transfer pricing report must be prepared considering the provisions of Resolution No. NAC-DGERCGC16-00000532. Lastly, the provisions regarding the requirement to submit all working papers with the report and the confidentiality of information are also updated.
With respect to Resolution No. NAC-DGERCGC16-00000532, the only amendment concerns the use of comparable data from independent third parties. In general, comparable data must be used from the year concerned. However, if no such data is available, comparable data from the immediately preceding year may be used, subject to certain conditions. As amended, the conditions include that the accounting is closed after 30 June, and it is demonstrated that the relevant conditions in both periods did not change. Previously it was required that the accounting closed from 1 September up to 31 August of the following year.