Tax compliance level of SMEs after the 15% tax rate adjustment: analysis of gaps and challenges in the Ecuadorian tax system

Abstract

Tax compliance constitutes a fundamental pillar for the sustainability of public finances and the strengthening of fiscal systems. In Ecuador, small and medium-sized enterprises (SMEs) represent a significant segment of the productive structure and contribute substantially to employment generation and economic activity. However, recent fiscal reforms, including the increase of the Value Added Tax (VAT) rate to 15%, have introduced new challenges for the timely fulfillment of tax obligations. This study aims to analyze the level of tax compliance among Ecuadorian SMEs following the tax rate adjustment, identifying the main gaps and challenges faced by these organizations in the current fiscal context. The research adopts a qualitative, documentary, and analytical approach based on the review of national regulations, scientific literature, and institutional reports. The findings indicate that increased tax pressure, regulatory complexity, and administrative limitations of SMEs significantly influence tax compliance behavior. Additionally, gaps related to tax culture, digitalization of accounting processes, and adaptation to regulatory changes are identified. The study concludes that strengthening fiscal education policies, regulatory simplification, and technical assistance to taxpayers could improve compliance levels among SMEs.