The NATIONAL SOLIDARITY ORGANIC LAW was published in Official Gazette No. 56, Sixth Supplement of June 10, 2025. The following is a synopsis of the tax reforms enacted in the aforementioned Law.
1. – Letter /j/ of numeral 19 of Art. 10 of the Internal Tax Regime Law – LRTI is hereby repealed. Said provision prescribes the following [and shall be in force until June 10, 2025]:
j. National Police, for donations of equipment and supplies for internal protection and maintenance of public order and citizen security. Donated equipment and supplies must be new or in optimal conditions for their use according to the competent body.
The regulations to this law shall define the parameters and requirements to be met to access this additional deduction; which shall be the minimum possible, given the purpose of this provision. In none of the cases the response of the institution may exceed the term of 90 days, in which case if the term is exceeded, it will be understood as approved.
Taxpayers who, through the application of these benefits, unduly take the expense, shall pay a fine equivalent to 100% of the value of the expense from which they have benefited, without prejudice to any criminal actions that may be applicable.
2.- The following numbered Art. is incorporated after Art. 10 of the LRTI [provision that becomes effective as of June 11, 2025]:
Art. (…). Taxpayers who make donations in favor of the National Police and/or Armed Forces, in real estate, equipment and supplies for internal protection and the maintenance of public order and citizen security, based on the needs stated by the forces of order, will obtain a rebate of the income tax caused for the tax period equivalent to the value of the donation, with a limit of 30% of the tax caused, without the right to a refund.
The equipment and supplies that are donated must be new and in optimal conditions for their use according to the competent organ. The donation shall be made in accordance with the mechanisms established in the General Regulations to this Law and based on the catalog established by the law enforcement agencies.
Quito D.M. / Guayaquil, June 2025
