Extinction and Remission of Obligations before the Municipality of Quito: Scope of Metropolitan Ordinance No. 096-2025

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.