Ecuador Limits Use of Tax Credit Notes to Settle Tax Liabilities

Summary – key takeaways

• 60% cap introduced: As from April–May 2026, tax credit notes may be used to settle no more than 60% of the amount payable in each tax return; the remainder must be paid via ordinary payment methods.
• Electronic balance and stricter controls: Dematerialized tax credit notes are now reflected as an electronic balance in the taxpayer’s SRI account and can only be offset through SRI’s online channels.
• ISD credit notes excluded: The new limitation does not apply to tax credit notes arising from the Foreign Currency Outflow Tax (ISD), which remain subject to their specific rules.

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Article

The Ecuadorian Internal Revenue Service (Servicio de Rentas Internas – SRI) has significantly tightened the rules governing the use of tax credit notes to offset tax liabilities. Through Resolution No. NAC‑DGERCGC26‑00000015, published in the Fourth Supplement of the Official Gazette No. 256 on 1 April 2026, the SRI amended the regulatory framework originally established under Resolution NAC‑DGERCGC21‑00000051. The reform aims to enhance control, transparency, and efficiency in the extinction of tax obligations through tax credit notes. [robalinolaw.com], [pwc.ec]

Scope of the reform

The Resolution applies to dematerialized (electronic) tax credit notes issued by the SRI and recorded as balances in favor of the taxpayer. These balances are now visible in the taxpayer’s electronic “securities account statement” within SRI en Línea, reinforcing monitoring and traceability of their use. [corralrosales.com], [lahora.com.ec]

In line with Article 43 of the Ecuadorian Tax Code, tax credit notes may be used to cancel taxes administered by the same authority, including principal tax, penalties, and interest. However, the SRI has now exercised its regulatory powers under the Tax Code to restrict the extent of such offsets. [burotribut…rio.com.ec]

New 60% limitation

The most impactful change is the introduction of a quantitative ceiling:
taxpayers may use available tax credit note balances to offset up to 60% of the amount payable per tax return. The remaining 40% must be settled through other authorized means, such as bank debit or transfer, using the SRI’s electronic payment channels. [robalinolaw.com], [burotribut…rio.com.ec]

This limitation applies individually to each return and covers both tax principal and ancillary charges (interest and penalties). The system will automatically prevent offsets beyond the 60% threshold.

Exception for ISD tax credit notes

The Resolution expressly clarifies that the new restriction does not apply to tax credit notes generated from the Impuesto a la Salida de Divisas (ISD). ISD credit notes continue to be governed by their specific legal and regulatory framework and may still be applied in accordance with existing rules. [corralrosales.com], [burotribut…rio.com.ec]

Operational and timing aspects

• The use of tax credit notes for offsetting purposes must be carried out exclusively through SRI’s electronic systems, ensuring proper registration and auditability.
• The Resolution entered into force upon publication on 1 April 2026, while certain operational aspects linked to the revised Article 9 of Resolution NAC‑DGERCGC21‑00000051 apply as of 1 May 2026. [pwc.ec], [burotribut…rio.com.ec]
• The reform also removes the possibility of using SRI-issued tax credit notes to secure or settle obligations administered by the National Customs Service (SENAE).

Implications for taxpayers

The new 60% cap materially affects cash-flow planning, particularly for taxpayers that historically relied on tax credit notes to extinguish most or all of their tax liabilities. Companies with significant accumulated balances must now ensure sufficient liquidity to cover the non-offsettable portion of each tax return. From a governance perspective, the reform signals a clear policy shift toward protecting revenue sufficiency while maintaining tax credit notes as a controlled, secondary settlement mechanism.

Key references

• Resolution NAC‑DGERCGC26‑00000015 (Official Gazette No. 256, 1 April 2026) – SRI
• Resolution NAC‑DGERCGC21‑00000051 – prior framework on tax credit notes
• Article 43, Ecuadorian Tax Code
• SRI en Línea – electronic offsetting platform

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