Ecuador

Overview

Last reviewed - 10 February 2020

Ecuador is located on the Northwest Coast of South America, bordering the Pacific Ocean between Colombia and Peru.

Ecuador was a part of the northern Inca Empire until Spanish conquest in 1533. Quito, as it was called then, became a seat of Spanish colonial government in 1563 and part of the Viceroyalty of New Granada in 1717. The territories of the Viceroyalty (i.e. New Granada [Colombia], Venezuela, and Quito) gained their independence between 1819 and 1822 and formed a federation known as Gran Colombia. When Quito withdrew in 1830, the traditional name was changed to 'Republic of Ecuador'. In September 2008, voters approved a new constitution, which was Ecuador's 20th since gaining independence.

The Republic of Ecuador is divided into 24 provinces, with Quito as its capital. The official language of Ecuador is Spanish.

In March 2000, Congress approved a series of structural reforms that provided for the adoption of the United States dollar (USD) as legal currency. Dollarization stabilized the economy, and positive growth occurred in the following years mainly because of high oil prices and increased non-traditional exports.

Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and one-fourth of the public sector revenues in recent years.

Ecuador has been experiencing fluctuating growth over the last few years. According to the Ecuadorian Central Bank, the economy reached a growth rate of 3% in 2017, 1.4% in 2018 and 0.2% approximately in 2019 estimated by the Ecuadorian Central Bank.

PwC has been present in Ecuador since 1969 and has over 350 professionals located in offices in Quito and Guayaquil. During these past 50 years, we have served the most prestigious local and foreign entities operating in Ecuador.

The PwC Industry Focus enhances our effectiveness. Clients benefit from access to professionals who have relevant industry knowledge and who can tailor solutions to specific needs. The industry programs cover the main economic sectors: Financial Services, Energy and Utilities, Retail and Consumer, Industrial Products and Services, Technology, Entertainment and Media, and Government Services.

As our main objective is to assist our clients in being successful, we welcome any questions you may have on our services in general or on the specific information described herein.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

22% to 28%, depending on the company's shareholders structure (corporate structure) and disclosure compliance.

Corporate income tax (CIT) due dates
CIT return due date

Between 10 April and 28 April.

CIT final payment due date

Between 10 April and 28 April.

CIT estimated payment due dates

Not applicable, companies are allowed to make voluntary CIT prepayments.

Personal income tax (PIT) rates
Headline PIT rate (%)

35

Personal income tax (PIT) due dates
PIT return due date

Between 10 March and 28 March

PIT final payment due date

Between 10 March and 28 March

PIT estimated payment due dates

Monthly withholding for employment income.

For other income, individuals can voluntarily make income tax prepayments.

Value-added tax (VAT) rates
Standard VAT rate (%)

12

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 0 to 25 / 0 to 2 / 8;

Non-resident: 0, 10 or 14 / 0 or 25 / 0, 25, or 35

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains generated by the transfer of equity rights (i.e. shares) are subject to income tax at a progressive rate from 0% up to 10%.

Individual capital gains tax rate (%)

Capital gains generated by the transfer of equity rights (i.e. shares) are subject to income tax at progressive rates from 0% up to 10%.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

0.15

Inheritance and gift tax rates
Inheritance tax rate (%)

35

Gift tax rate (%)

35

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.