Quevedo & Ponce - Noticias Legales
Extinction and Remission of Obligations before the Municipality of Quito: Scope of Metropolitan Ordinance No. 096-2025
- May 9th, 2025
- Quevedo & Ponce
The Metropolitan Council of Quito enacted Metropolitan Ordinance No. 096-2025, published in April 2025, which establishes a special regime for the extinction of tax and non-tax obligations, as well as for the remission of 100% of interest, fines, surcharges, costs, and related accessories derived from such obligations, in accordance with the third and eighth transitory provisions of the Organic Law for Financial Relief and Economic Strengthening of Generations in Ecuador.
This regulation is intended to provide a mechanism of economic relief to taxpayers and administered parties with outstanding debts to the Municipality of Quito, its public enterprises, agencies, and affiliated institutions, by promoting the regularization of overdue obligations through exceptional measures that acknowledge the economic reality of individuals and entities.
Extinction of Tax and Non-Tax Obligations
The extinction is carried out ex officio, by resolution of the Metropolitan Mayor, regarding debts that became due on or before December 9, 2024, provided the total amount owed by each taxpayer or administered party does not exceed one unified basic salary, and such obligations have been in arrears for at least one year. It must also be verified that the administration has undertaken collection efforts or enforcement proceedings.
This provision applies to taxes (including fees and special contributions) and to non-tax obligations, such as administrative penalties or charges for municipal services. Affiliated entities may voluntarily adhere to this regime, subject to the issuance of technical, financial, and legal reports justifying the appropriateness of applying the extinction.
Remission of Interest, Fines, and Surcharges
Additionally, the ordinance establishes a regime for the full remission of interest, fines, surcharges, and costs on overdue tax obligations. This benefit applies when the taxpayer makes full or partial payment of the capital amount by June 30, 2025. In the case of partial payments, remission shall apply proportionally to the amount paid.
Remission also applies to obligations currently under coercive collection, in administrative proceedings, or involving pending or substitute tax returns, as long as the formal and substantive conditions are met.
Explicitly excluded from this benefit are taxes that have been withheld or collected by the taxpayer, as well as obligations that have already been exceeded through prior payments, which shall not be deemed overpayments nor subject to refund.
At Quevedo & Ponce, we have a team of experts in tax, administrative, and municipal law. We provide comprehensive legal counsel to determine whether your obligations qualify for extinction or remission and guide you through the entire process before the Decentralized Autonomous Government of the Metropolitan District of Quito and its affiliated entities.
Más Artículos
Superintendence of Personal Data Protection Issues Opinion on the Use of Biometric Data for Attendance Control
Superintendence of Personal Data Protection Issues Opinion on the Use of Biometric Data for Attendance Control
Promoting the Economy of Entrepreneurs Women in Ecuador: A Key Legal Advancement
The Organic Law to Promote the Economy of Entrepreneurs Women, published on March 10, 2025, promotes access to financial resources, training, and opportunities for entrepreneur’s women, seeking to reduce gender gaps in the economic and business sectors.
The special emergent contract was declared unconstitutional by the Constitutional Court
The Constitutional Court, by ruling 49-20-IN/25, declared article 19 of the Humanitarian Support Law partially unconstitutional, which allowed the unilateral termination of the emerging contract without compensation. Despite this, the contract remains valid, but the employer must compensate if the contract ends before the agreed period.
Abandonment in Judicial Proceedings: Is It the End of a Right?
Abandonment in judicial proceedings is declared when the parties fail to act for six months following the last providence, except in cases involving the rights of children, persons with disabilities, and labor rights. If declared for the first time, the claimant may file a new claim after six months; if it occurs again, the right to sue is extinguished.
WIPO Treaty on Intellectual Property, Genetic Resources, and Associated Traditional Knowledge
The WIPO Treaty on Intellectual Property, Genetic Resources, and Traditional Knowledge, adopted in 2024, establishes an international framework for the protection and recognition of ancestral knowledge. Through innovations such as the disclosure requirement, it promotes transparency in the use of genetic resources and traditional knowledge in patented inventions, ensuring respect for the communities of origin.
