Ecuador

During 2025, Ecuador’s National Assembly approved several urgent laws proposed by the President. These laws focused on security, institutional reform, and fiscal relief and incentives.

• Organic Law of National Solidarity (abolished regulation in October 2025)
• Organic Law of Public Integrity (abolished regulation in October 2025)
• Organic Law of Social Transparency
• Organic Law for the strengthening of the armed forces and national police

These included several fiscal measures, notably:

• 100% remission of interest, fines, and surcharges on tax debts incurred up to 31 December 2024. Originally deadline to apply for benefits: 31 December 2025; however, this law was applied until October, when the Law of Public Integrity was abolished.
• A single income tax of up to 14% on the distribution of dividends or profits.
• Up to 30% income tax reduction for donations made to public institutions and security forces.
• Annual tax in advance (“pago en cuenta”) on undistributed profits held as of July 31 each year. The tax is calculated on the total accumulated balance of retained earnings and is subject to a progressive rate ranging from 0% to 2.5%, depending on the amount of undistributed profits.