SRI Is Flagging Unfiled Tax Returns Going Back Seven Years — Here's What Expats Need to Know

If you've received an unexpected email from the SRI (Servicio de Rentas Internas, Ecuador's tax authority), you're not alone — and you need to act fast.

What's Happening

The SRI has been sending formal notifications to taxpayers flagging unfiled income tax declarations from previous fiscal years. Some taxpayers are receiving notices covering multiple years simultaneously — 2021, 2022, and 2024, for example — despite believing their tax obligations were current.

The notifications arrive by email and require a response through the SRI's online services portal within 10 business days. Miss the deadline, and you risk penalties, interest, and potential enforcement action.

The Seven-Year Window

Under Ecuadorian tax law, the SRI can review taxpayer records going back up to seven years. That means a filing oversight from 2019 could surface in 2026 without warning. The agency uses cross-referencing with employer records, bank data, and third-party information to identify discrepancies.

Who Needs to File — Even If You Think You Don't

Many expats assume that if their employer withholds taxes (via Form 107, the Ecuadorian equivalent of a W-2), they're covered. That's not always true. You must file a personal income tax declaration if you have:

• Bank interest income — even small amounts from savings accounts or fixed-term deposits (pólizas)
• Rental income — from any property you own in Ecuador
• Freelance or consulting income — paid outside your primary employment
• Income from two or more employers in the same fiscal year
• Investment returns — dividends, capital gains, or other financial income

The threshold is low. If you earned any income beyond your primary salary, the SRI expects a declaration.

The Personal Expense Annex

Separately, the Anexo de Gastos Personales (personal expense annex) is mandatory for most taxpayers — not optional, as many believe. This form documents deductible personal expenses (housing, health, education, food, clothing) and must be filed through the SRI's online portal. Processing can take time, so don't wait until the last minute.

Key Deadlines for 2026

Income tax declarations for fiscal year 2025 are due based on the ninth digit of your cédula or RUC:

| 9th Digit | Due Date | |-----------|----------| | 1 | March 10 | | 2 | March 12 | | 3 | March 14 | | 4 | March 16 | | 5 | March 18 | | 6 | March 20 | | 7 | March 22 | | 8 | March 24 | | 9 | March 26 | | 0 | March 28 |

What This Means for Expats

• Check your email: Look for any communication from the SRI — including spam folders. Notifications may have arrived while you weren't paying attention
• Log into SRI online: Visit the SRI portal with your credentials and check for pending obligations. You may have unfiled years you didn't know about
• Bank interest counts: That 4% return on your póliza at Banco Pichincha? The SRI knows about it. If you didn't declare it, expect a notification
• Get help if needed: If you receive a multi-year notification, consult an Ecuadorian tax accountant (contador). The penalties for late filing compound quickly, but voluntary correction is always better than enforcement
• 10 days is firm: The response window is short. If you're traveling for Carnival, deal with this before you leave or immediately when you return
• U.S. expats: double obligation. Remember that as a U.S. citizen or green card holder, you must also file U.S. taxes on worldwide income — including Ecuador-source income. The SRI notification doesn't affect your IRS obligations, but it's a good reminder to stay current on both

Source: El Universo