On 24 August 2017, the Internal Revenue Service (IRS) of Ecuador issued Resolution No. NAC-DGERCGC17-00000440 to amend previous Regulation N° NAC-DGERCGC14-00000787 for establishing the income tax withholding rates with effect from 22 August 2017.
Gains from the sale of shares between domestic companies are subject to 0.2% withholding tax and 0% to 35% withholding rate may apply on gains obtained by Ecuadorian residents from the direct or indirect transfer of capital.
Profits obtained by foreign individuals or companies from the direct or indirect transfer of capital are subject to withholding tax rate from 0.2% to 22% and 5% withholding rate will apply if the stocks are not sold in the stock market.
