SRI Opens September Window to Update Personal-Expense Projections

Employees under a dependent employment relationship who earn more than USD 12,208 per year or USD 1,017.33 per month can update their personal-expense projection through September 30, 2026, according to information reported by Primicias.

The projection is the information employees gave their employer in February for the calculation of income tax, collected by Ecuador's Internal Revenue Service (SRI). An update can change the expenses projected or the number of family dependents recorded.

Why the update matters

The updated information allows an employer to recalculate the employee's monthly tax withholding. A higher projection of personal expenses can reduce the amount withheld each month, according to the report.

The process is therefore a withholding adjustment, not a blanket refund announcement. The source does not state a universal refund amount and does not say that every foreign resident is eligible. Its income and employment conditions still apply.

The expense categories listed include:

• Food
• Education
• Art and culture
• Health
• Clothing
• Housing
• National tourism, when the establishments are registered
• Food and health expenses for pets
• Interest on unsecured loans

When changes can be made

Employees initially submit the projection in February each year. The rules also provide two update opportunities, in June and September, according to tax expert Idrián Estrella, who was quoted in the report.

The stated update windows do not prevent a worker from changing the information at another time of year. A new projection can be submitted to the employer if the employee's salary changes or if the employee adds a family dependent, such as a child.

The rules allow parents, a spouse, a partner in a legally recognized domestic partnership, and children through the year they turn 21 to be registered as dependents. Children or people with disabilities of any age may also qualify when the stated conditions are met.

Dependents must rely economically on the employee and must not exceed the applicable taxable-income limit. One person cannot be listed as a dependent by more than one taxpayer.

Documentation still matters

The projection is a good-faith declaration of expenses the employee expects to make. Those expenses later need to be supported by invoices or sales receipts. The report emphasizes that it is not enough to submit a number: projected expenses must correspond to expenses that actually occur and can be documented.

There is a second step in February 2027. Employees must submit the personal-expense annex for the 2026 tax year through the SRI's online portal using their personal access key. The annex reports the expenses actually incurred and used to support the projection.

If an employer withheld less income tax because of expenses that ultimately cannot be justified, the employee could have to pay the difference during the final tax calculation.

What This Means for Expats

An expat employed under Ecuador's dependent-worker system should first check whether the income and employment conditions in the SRI guidance apply. The practical checklist is to review projected categories, update changes by September 30 if eligible, keep invoices and sales receipts, and remember the February 2027 annex.

The central rule is simple: a projection changes the withholding calculation, but it does not replace the later obligation to support expenses that were actually incurred.

Source: Primicias