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 a single 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.
Dividends and profits distributed by national or foreign companies residing in Ecuador to foreign companies are subject to 25% income tax withholding on the 40% of the distributed dividend.
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.
As of December 2021, foreign income is taxable in Ecuador; however, taxes paid abroad may be used as tax credit in Ecuador.