Ecuador has introduced a series of tax benefits to support female entrepreneurs with the enactment of the Organic Law for Promoting the Economy of Women Entrepreneurs, published in the Official Gazette on 10 March 2025.
The law aims to reduce financial barriers and encourage the growth of women-led businesses through various incentives.
The law came into effect on 10 March 2025.
According to the law, companies that sponsor, fund, or donate to female-led entrepreneurship programs registered in the National Registry of Entrepreneurs (RNE) can claim an extra 150% tax deduction.
Women-led startups registered in the RNE will benefit from lower corporate income tax rates during their early years of operation, with the specific rates and duration to be determined by the Internal Revenue Service (SRI).
Women entrepreneurs registering their businesses for the first time will be exempt from initial registration fees. Those who establish businesses and create jobs will receive tax credits, which can be used to offset operational costs during the first two years of activity.
Business expenses related to the training and employment of women will be fully deductible, with additional deductions available for companies that maintain a workforce of at least 50% women. Eligible women-led enterprises will also benefit from VAT refunds on essential goods and services required for their operations.
To support women entrepreneurs in rural and economically disadvantaged areas, the law introduces full or partial tax exemptions for up to five years.
