Ecuadorian President Daniel Noboa signed a decree ratifying the income and capital tax treaty with the UK on 13 December 2024.
The agreement aims to avoid double taxation on income and capital gains between the two countries. It will apply to taxes on income and capital gains imposed on behalf of Ecuador or the UK, or their political subdivisions or local authorities.
The treaty will enter into force after the exchange of ratification instruments. It will be applicable in Ecuador starting from 1 January of the year after its entry into force, and in the UK it will apply to withholding taxes from 1 January, corporate taxes from 1 April, and income and capital gains taxes from 6 April of the following year.
Earlier, The United Kingdom and Ecuador signed the treaty on 6 August 2024.
