Transfer Pricing guide: Ecuador
Read below for more detailed information on transfer pricing regulations, document requirements, and other considerations for Ecuador, as well as recent industry hot topics and key developments in the country's business landscape.
Page updated 1st July 2026
Transfer Pricing regulations
Is the jurisdiction part of OECD/G20 Inclusive Framework on BEPS?
No, but the OECD Guidelines are mentioned in its local regulations.
Relevant Transfer Pricing regulation
• Ecuador's Transfer Pricing regulations are detailed in the Organic Law of the Internal Tax Regime (LORTI, articles listed after 15)
• The Regulations for the application of the Law of the Internal Tax Regime (RLRTI, Articles 84 to 91)
• Technical Sheet for the Standardization of Transfer Pricing Analysis and resolution No. NAC-DGERCGC15-00000455
Is this regulation aligned with the OECD Guidelines
Yes. According to art. 89 of the RLRTI, the provisions of the “Guidelines on Transfer Pricing for Multinational Enterprises and Tax Administrations” of the OECD shall be used as a technical reference, provided that it is consistent with the provisions of the Internal Tax Regime Law. For economic activities involving the trade of goods whose prices are regulated, and where intercompany transactions arise (import and export transactions), it is recommended that direct methodologies, such as the CUP (Comparable Uncontrolled Price) method, be preferred for transfer pricing valuation.
Transfer Pricing documentation requirements
Documentation Threshold for Preparation of Local File/ TP Documentation
Yes. All taxpayers who have carried out transactions with related parties and whose total value exceeds 10 million dollars must submit the Local File.
Documentation Threshold for Preparation of Master File
This aspect is not detailed in the regulation
Documentation Threshold for Preparation of Country by Country Report
This aspect is not detailed in the regulation
Submission of Local File, Master File, and CbC Report Required? If so, when?
Local File: within a period of no more than two months from the date of enforceability of the income tax return.
Master File and CbCR: They must be present upon request.
If No Submission Required, any Other Deadline?
N/A
Other Documentation Requirements
N/A
Does TP documentation / Local file Need to be Prepared Contemporaneously with Tax Return Filing (i.e., before filing the return)?
Yes (Income Tax Return has to be submitted first than TP Return Filing, but it is important that the company has the transfer pricing analysis when submitted the Income Tax Return).
Transfer Pricing Specific Returns
Preparation of TP Return Required?
Yes.
Deadline for TP Return Filing
According to article 84 of the RLRTI, the return is filed within a period of no more than two months from the date of enforceability of the income tax return. That is, according to the deadlines that are published by the tax authorities each year according to the last digit of the taxpayer's ID or RUC number.
Key information to be included in the TP Return
Box(es) According to the Income Tax Return Declaration, Accounting Account Where the Transaction with the Related Party Was Recorded, Taxpayer information, transactions with related parties, the amount of the transactions, the related parties (name, respective country and identification ID), reason for linkage, type of transaction (asset, liabilities, revenues and expenses), and analysis method.
Benchmarking - Local Tax Authority Preferences
Local vs Regional Comparables Set
Both
Single-Year vs Multi-Year Analysis
You have to use the most recent information of the comparable companies. You can only use a multi-year analysis if the certain criteria are met.
Public vs Private Comparables
Both
Interquartile Range or Full Range
Interquartile Range.
Transaction-Based or Aggregate Approach, or Both
Both
How Often are Benchmarking Sets Renewed (financial update versus full scope BMS preparation)
Each year the benchmark has to be updated.
TP Penalties
In Case of Delayed Submission of Documentation
According to the article listed after Article 22 of LORTI and Article 84 of RLRTI, the failure to submit the annexes and required information, or the submission of false data, errors or differences to the Income Tax return, will be sanctioned by the Tax Administration itself with a fine of up to 15,000 dollars. Important: There is a penalty amount for each type of taxpayer and type of documentation (Art. 13 and 14 of Resolution Nr. NAC-DGERCGC24-00000020).
In case of Income Adjustments in Course of a Tax audit
First, the price is adjusted to the market range and then the income tax rate applicable to the regime to which the company belongs is applied.
Other Considerations
APA & MAP Availability
The Tax Authority, through Resolution No. NAC-DGERCGC14-00001048 has issued a procedure for the resolution of inquiries regarding the prior valuation of transactions carried out between related parties for the determination of transfer prices.
See more details on Resolution No. NAC-DGERCGC21-00000013
Applicability of Safe Harbour Rules
Yes, for example: low value added rules (5%), according to the OECD Guidelines (Chapter VII).
Critical Transfer Pricing Issues Prevailing in the Jurisdiction, if any
The transfer pricing schedule is related to the income tax return, so consistency must be maintained in what is declared to avoid penalties and disputes.
A particular aspect in this country is the following: the taxpayer must submit to the tax administration (if applicable) the transfer pricing documentation: TP Return Filing and Local File.
It is clarified that the submission of these documents is already established in specific dates and is not a specific requirement of the Tax Administration for each taxpayer.
Criteria/ Guidelines for Transfer Pricing Audit/ Assessments by Tax Authority
The Tax Administration checks if the Transfer Pricing Study complies with the points mentioned in the local law.
Relevant Regulations and Rulings with Respect to Thin Capitalization or Debt Capacity in the Jurisdiction
• As mentioned above, for the analysis of comparability of loan transactions, the amount of the loan, the term, the guarantees, the solvency of the debtor, the interest rate and the economic substance of the operation must be considered.
• According to Chapter IV article 10 of the Reglamento Para Aplicación Ley De Régimen Tributario Interno, the treatment for the deductibility of interest arising from financing transactions between related parties is established
Recently, the maximum limit for the presentation of the Annex of Transactions with Related Parties and the Comprehensive Transfer Pricing Report was updated. It went from US$15,000,000.00 to be reduced to US$10,000,000.00 according to article 2 of Resolution No. NAC-DGERCGC15-00000455.
Based on the updated Technical Sheet in 2024, transfer pricing analyses are standardized, and the presentation specifications for both the TP Return Filing and the Local File are expanded, with both documents related to transfer pricing.
The Tax Administration constantly updates the Technical Sheet on transfer pricing, so it is recommended that taxpayers stay alert to these changes in order to avoid penalties
There is a penalty amount for each type of taxpayer and type of documentation (Art. 13 and 14 of Resolution Nr. NAC-DGERCGC24-00000020).
The Tax Authority, through Resolution No. NAC-DGERCGC14-00001048 has issued a procedure for the resolution of inquiries regarding the prior valuation of transactions carried out between related parties for the determination of transfer prices.
See more details on Resolution No. NAC-DGERCGC21-00000013
Alignment with OECD Guidelines
According to art. 89 of the Reglamento Para Aplicación Ley De Régimen Tributario Interno, the provisions of the “Guidelines on Transfer Pricing for Multinational Enterprises and Tax Administrations” of the OECD shall be used as a technical reference, provided that it is consistent with the provisions of the Internal Tax Regime Law.
Benchmarking Analyses Nuances or Preferences
You have to use the most recent information of the comparable companies. You can only use a multi-year analysis if the certain criteria are met.
Thin Capitalisation Considerations for Intercompany Loans
As mentioned above, for the analysis of comparability of loan transactions, the amount of the loan, the term, the guarantees, the solvency of the debtor, the interest rate and the economic substance of the operation must be considered.
According to Chapter IV article 10 of the Reglamento Para Aplicación Ley De Régimen Tributario Interno, the treatment for the deductibility of interest arising from financing transactions between related parties is established, followed by the details:
In order for the interest paid or accrued by banks, insurance companies, and entities from the Popular and Solidarity Economy sector to be deductible, for external loans granted directly or indirectly by related parties, the total amount of such interest cannot exceed three hundred percent (300%) of the equity. In the case of other companies or individuals, the total amount of net interest on transactions with related parties must not exceed twenty percent (20%) of the profit before labor participation, plus the corresponding interest, depreciation, and amortization for the respective fiscal year, except for interest payments on loans used to finance delegated management projects and public projects of common interest, as qualified by the competent public authority. The regulation of this law will determine the conditions and time frame for the application of this article. Interest paid or accrued on the excess of the amounts indicated will not be deductible.
Transfer Pricing Primary Risk Areas in Jurisdiction
- A particular aspect in this country is the following: the taxpayer must submit to the tax administration (if applicable) the transfer pricing documentation: TP Return Filing and Local File.
- It is clarified that the submission of these documents is already established in specific dates and is not a specific requirement of the Tax Administration for each taxpayer.
Other Remarks/Comments
It is important to note that, if during the same tax period transactions have been carried out with related parties for an accumulated amount exceeding three million US dollars (USD 3,000,000), taxpayers must file the Schedule of Related Party Transactions. In addition, if such amount exceeds ten million U.S. dollars (USD 10,000,000), they must file, together with the Schedule of Related Party Transactions, the Comprehensive Transfer Pricing Report.
