The valuation of inventories is not specifically treated in the tax law. IFRS must be applied.
Gains from stock/shares sales and gains from investment funds and investment trusts are levied with income tax. Gains on the sale of fixed assets are added to the taxable base and levied at regular CIT rates, except gains derived from occasional sales of real estate, which are tax exempt.
Dividends and profits distributed by national or foreign companies residing in Ecuador to other national companies are exempt from income tax.
In general terms, interest income is considered as part of the CIT base for Ecuadorian entities.
In general terms, royalty income is considered as part of the CIT base for Ecuadorian entities.
Foreign-source income is considered exempt for tax purposes if the company demonstrates that the income tax was paid abroad. Income generated in tax haven jurisdictions is not considered to be part of this exemption and should be added to regular income.