Individual - Significant developments

Last reviewed - 21 July 2022

Through the Law for Tax Simplification and Progressivity, enacted on 31 December 2019, the deduction of personal expenses for individuals earning a net income greater than 100,000 United States dollars (USD) was limited.

Due to COVID-19 and the 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.

The Organic Law for economic development and fiscal sustainability after the Covid-19 pandemic enacted in November 2021, foresees several reforms for individuals, specifically related to personal expenses which are currently considered as tax credit  against income tax due.

Publications about additional economic and regulatory measures related to COVID-19 are available at: