Costa Rica and Ecuador: TIEA enters into force
On 17 September 2016, the tax information exchange agreement (TIEA) between Costa Rica and Ecuador entered into force, which requires the parties to exchange information that is relevant for the determination, assessment, collection and execution
See MoreEcuador: Withholding tax on credit transactions between financial entities
Administrative Resolution No. NAC-DGERCGC16-0156 issued by the Tax Administration was published in the Official Gazette and it establishes that 1% withholding tax rate will apply even if the Central Bank acts as an intermediary under any contractual
See MoreEcuador: Tax measures to resolve crisis caused by natural disaster
The National Assembly of Ecuador approved the law containing provisional tax measures to help resolve the crisis caused by the natural disaster of 16 April 2016. Generally, the Law establishes that contributions introduced are non-deductible for
See MoreEcuador: Issued Executive Degree 973 to clarify applicability of CUP method
The Executive Decree 973 issued by the president of Ecuador eliminates the application of the CUP method for import and export transactions with public and well-known international prices and the CUP Method for import and export transactions through
See MoreEcuador published new rules about annual contribution to supervisory body
On 24 February 2016, New Resolution SCVS-INAF-DNF-16-006 was published in the Official Gazette, issued by the Supervisory Body of Companies, Securities and Insurances, established the amounts for the year 2016 of the annual contribution need to be
See MoreEcuador: Income tax rates for banana sector
According to a Presidential Decree issued on 30 December 2015, a single corporate income tax regime for the banana sector is established with rates that range from 0.50% to
See MoreEcuador-new regulations on transfer pricing documentation requirements
Recently Ecuador’s Internal Revenue Service (IRS) has issued regulations giving outlines to new transfer pricing documentation requirements. The new regulations require taxpayers to include substantial information on the economic substance of
See MoreQatar ratified the DTA with Ecuador
Qatar's Emir issued an instrument of ratification approving the income tax treaty with Ecuador on 14 April
See MoreEcuador: introduces anti-abuse provision on loans to shareholders
Under new legislation loans made by Ecuadorian companies to non-resident shareholders are treated as dividends and therefore subject to Ecuadorian withholding tax. The applicable domestic withholding tax rate on dividends is limited to the
See MoreEcuador: Changes to corporate income tax
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
See MoreEcuador: Changes to capital gains tax
The tax reform in Ecuador includes measures regarding the taxation of capital gains related to indirect and direct transfers of shares of Ecuadorian corporations with increased rates of corporate tax imposed on shareholders of Ecuadorian
See MoreEcuador: Enacts tax reform Bill
Ecuador enacted a proposed tax reform bill on 29 December 2014. The legislation was effective from 1 January 2015. There are several changes in the tax reform bill to the current tax law. The changes are as follows: The general corporate
See MoreEcuador: Tax Reform Proposed
A Tax Reform bill was sent by the President of Ecuador to the National Assembly for discussion, on 28 November 2014. There are several changes in the proposed Tax Reform Bill to the current tax law. The changes are following: The general
See MoreEcuador: Imposition of electronic invoices on tax registered business
Tax registered business in Ecuador are obliged to maintain electronic invoices. This measure is imposed to reduce VAT fraud in Ecuador and came into force from the month of October 2014. Tax authorities have access to online portal of all customers
See MoreTIEA between Ecuador and Honduras
On July 31, 2014, Foreign Affairs Ministry of Honduras announced the signing of a Tax information exchange agreement (TIEA) with
See MoreDTA between China and Ecuador enters into force
The double tax agreement (DTA) between China and Ecuador which was signed in 2013 entered into force on 6 March 2014 and will apply as from 1 January 2015. When it is in effect, the agreement will establish maximum withholding tax rates on
See MoreEcuador: Income tax exemption on deposits and investments in securities
On 21 February 2014, the General Director of the Internal Revenue Service published Circular No. NAC-DGECCGC14-00003 in order to communicate the tax authority's application of the substance over form principle as a criterion for the application of
See MoreEcuador ratifies DTA Protocol signed with China
Ecuador ratified the Protocol to the DTA with China through Decree no. 208 on 13 January
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