Within the Organic Code of Production, Trade, and Investments, an investment contract is established as a
legal instrument that recognizes the rights of both domestic and foreign investors and bestows tax stability. It also
allows for the exemption from certain import tariffs.
Income Tax reduction from 25% to 22% has been in place since, the year 2013.
Payment Exemption of Foreign Exchange Outflows Tax (ISD).
Companies that reinvest their
profits in the country may
obtain a reduction of 10 percentage points in the rate
of income tax applied.
INCENTIVES APPLICABLE TO KEY
SECTORS SUCH AS
Incorporated companies established (outside Quito and Guayaquil) are exempt
from paying income tax for 5 years, counted from the first income generating cycle.. Deduction of an additional 100% to the annual depreciation cost of new fixed and productive assets for 5 years.
An additional 100% depreciation, is deductible from the depreciation and amortization corresponding to the acquisition of machinery, equipment, and technologies destined to the implementation of cleaner production mechanisms, to the generation of renewable energy sources (solar, eolian, and the like) or to the reduction of environmental impact caused by productive activities, and to the reduction of the greenhouse effect.
INCENTIVES FOR TERRITORIAL DEVELOPMENT ZONES
There are 80 + zones, where investment in tourism
projects may benefit from an additional deduction of 10% over 5 years from the income tax calculation.
Ecuador is one of the countries with the lowest
tax rates in the region, with a total tax rate of 33% , according to a study compiled by PWC, Paying Taxes 2015.
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