Ecuador automatically shifts thousands to new tax regimes from July 2026

Thousands of taxpayers in Ecuador are being automatically moved into new tax regimes by the Servicio de Rentas Internas (SRI) starting July 1, 2026. This change stems from a review of annual income and how long individuals have been in the Simplified Regime for Entrepreneurs and Popular Businesses (Rimpe).

The SRI is making these updates automatically, not requiring taxpayers to apply. Individuals whose income exceeded certain thresholds or who stayed in the Rimpe regime for the maximum allowed time have been moved to different categories, either the Rimpe Entrepreneur category or the General Regime.

The Rimpe regime has specific income limits: businesses earning up to $20,000 annually remain "popular businesses." Those earning up to $300,000 annually are classified as "entrepreneurs." Income exceeding $300,000 automatically places taxpayers in the General Regime.

Beyond income, the duration of stay in the Rimpe regime matters. Entrepreneurs who spent three consecutive fiscal years in the Rimpe Entrepreneur category are automatically moved to the General Regime, even if their income remained below the specified limit. The primary impact of these changes lies in the new tax obligations, such as issuing VAT invoices and submitting regular tax declarations, which differ significantly between regimes. The SRI warns that failure to comply with these new requirements can result in penalties. Taxpayers are advised to verify their current tax regime on the SRI's online portal to ensure accurate declarations and electronic invoicing.