Generally Ecuadorian companies are subject to a 22% rate of corporate income tax. In accordance with the new law, if more than 50% of the company is owned by non-resident shareholders that are resident in “tax haven” jurisdictions, the applicable corporate income tax rate will be 25%.
If the “tax haven” shareholders do not own more than 50% of the company, only the portion of the company’s income attributable to the “tax haven” shareholder will be subject to the 25% corporate income tax rate.
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