The Internal Revenue Service issued the Regulation
NAC-DGERCGC22-00000065 on December 30, 2022, by which the rules for
the disclosure of the corporate structure were amended. The most
important changes are summarized below:
1. The last level of the corporate structure to be disclosed is
the one that identifies the individuals who are the beneficial
owners of the entity and/or are tax residents in Ecuador. This
information excludes nominal or formal holders.
2. If the local entity has as -direct or indirect- shareholder an
entity which is not a tax resident in Ecuador, this shareholder
will be considered as the last level of the corporate structure to
be disclosed if the individuals at the end of the chain own
-individually or jointly with their related parties-, less than 10%
of the local entity's share capital.
However, if at the end of the chain there are individuals who are
tax residents in Ecuador, such individuals will be considered as
the last level of the corporate structure to be disclosed,
regardless of their percentage of ownership in the local
entity.
3. If the local entity has as -direct or indirect- shareholder an
entity listed in a foreign stock exchange, it will have to disclose
the part of the entity's share capital that is not traded or
that is reserved to a limited group of investors. With respect to
such part of the capital it shall report:
a. Any shareholder holding -directly or indirectly- 2% or more of
its share capital.
b. All shareholders who are tax residents in Ecuador, regardless of
their percentage of ownership.
4. The shareholders' annex for the fiscal year 2022 may be
filed until March 28, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.