On 26 December 2023, Ecuador’s Internal Revenue Service (SRI) announced updated personal income tax brackets and rates for 2024, with minor adjustments for most earners and a slight increase for the highest income bracket. The changes, outlined in Resolution No. NAC-DGERCGC23-000036, aim to maintain tax fairness and stability while addressing inheritance and gift tax reforms. Key changes are outlined below:

  • The progressive tax structure ranges from 0% for incomes up to USD 11,902 to a maximum of 37% for incomes exceeding USD 107,199.
  • The resolution also introduces updated brackets and rates for income derived from inheritance, gifts, and legacies. This aims to promote transparency and address potential loopholes in the previous system.

The resolution comes into effect on the specified date and is applicable starting 1 January 2024.