Ecuador

Corporate residence is determined by the place of incorporation. For foreign branches, it is the place stated in the domiciliary deed.

Permanent establishment (PE)

According to the local tax legislation, a company can be deemed to have a PE in Ecuador if it maintains any place or fixed centre, within the country, in which a foreign company develops all or part of its activities.

The corresponding regulations point out that a PE also exists when a foreign company maintains, within the country, a person or an entity that acts on its behalf and habitually exercises an economic activity. It contemplates several instances where this is applicable, among them:

• A person with legal representation, which is normally granted through a power of attorney or through a legalised decision by the company and includes the capacity to legally act on behalf of the company.
• A person working under a contractual relationship for a foreign company to carry out economic activities on behalf of that company.
• A centre for the direction of the activities of the foreign company.
• A branch, agency, or office that acts on behalf of the foreign company.
• An office for the provision of technical consultancy services related to contracts that are executed in the country.