Ecuador

On 12 March 2024, a Law to support the Internal Armed Conflict and the Social and Economic Crisis entered into force. The law includes the following new temporary tax contributions and reforms to value-added tax (VAT) rules, among others:

• A temporary contribution of 3.25% over 2022’s taxable profits is introduced for companies.
• Similarly, a temporary contribution for banks and union credits was also established, based on taxable profits of 2023; the rate varies from 5% to 25%.
• A general VAT rate of 15% is established, applicable as of 1 April 2024.
• A VAT rate of 5% is established for local transfers of construction materials.
• The remittance tax rate is set at 5%, effective from 1 April 2024.