Ecuador Clarifies Pillar 1 Amount B Approach Not Adopted

Ecuador's Internal Revenue Service (SRI) has published Circular No. NAC-DGECCGC26-00000001, clarifying its position on Pillar 1 Amount B. In particular, the circular clarifies that Ecuador has not adopted the simplified and standardized Amount B approach for baseline marketing and distribution activities, and that taxpayers performing such activities with related parties must continue to follow Ecuador's standard transfer pricing regime in the Internal Tax Regime Law.