Shareholders Annex

• Law Firm: CorralRosales
• Subject Matter: Corporate/Commercial Law, Corporate and Company Law, Shareholders
• Author: Ms Andrea Moya
• Published date: 17 January 2023

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...