On December 31, 2019, the Ecuadorian government introduced the Law for Tax Simplification and Progressivity The main corporate tax measures and reforms include:
- Taxation on the distribution of dividends.
- Reforms of Corporate Income Tax pre-payments.
- New thin-capitalization rules for intercompany loans.
- Reforms on transactions exempted of Remittance Tax.
- Introduction of a new temporary contribution.
- VAT on the importation of digital services.
Due to Covid-19 and current economic situation, on June 2020 the Ecuadorian Government enacted the “Law of Humanitarian Support to Combat the Health Crisis derived from Covid-19”. This Law introduces, among others, the negotiation of working conditions between employers and employees, new hiring conditions as well as the possibility to reduce working hours per day, without major changes in tax legislation.
Publications about additional economic and regulatory measures related to Covid-19 available at: https://www.pwc.ec.