Tax
SRI administers 25 percent corporate tax and 15 percent VAT
The Servicio de Rentas Internas administers taxation in this dollarised economy. Corporate income tax is 25 percent, rising to 28 percent where shareholders in tax havens are involved. VAT was raised from 12 to 15 percent in 2024 to fund security spending. There is also an outflow tax (ISD) on transfers of currency abroad.
Key rules
- Jurisdiction — National, with municipal patents and property taxes in addition
- Deadline — Annual corporate return: March to April by RUC digit
- Deadline — VAT: monthly, or semi-annually for certain small taxpayers
Governing law
- Ley de Régimen Tributario Interno
- Código Tributario
- Ley Orgánica para Enfrentar el Conflicto Armado Interno2024 VAT increase
In practice
Ecuador uses the US dollar as its currency, so there is no exchange-rate dimension to tax planning, but the impuesto a la salida de divisas on outbound transfers functions as a significant friction on cross-border payments. The 2024 VAT increase to 15 percent was expressly tied to financing the response to internal armed conflict, and is a recent change that older summaries will state incorrectly.