Ecuador has published Administrative Resolution CPT-RES-2019-005 in the 26 November 2019 edition of the Official Gazette which establishes the procedures for qualifying taxpayers to apply the 22% corporate tax rate that was maintained for micro and small enterprise, and exporters that maintain or increase employment as part of the 2018 tax reform. As part of the reform, the corporate tax rate was increased to 25%, while a 3% reduction benefit was provided for qualifying taxpayers.
For micro and small enterprises, the 22% tax rate may be applied if the taxpayer qualifies as such according to the Regulation of Investments of the Organic Code of Production, Trade, and Investments, which includes:
The 22% rate may be applied directly, with the qualification as a micro or small enterprise validated at the time the tax return is filed.
For exporters, the 22% tax rate may be applied if the exporting taxpayer:
Further, the exporter must confirm the following in its tax return:
Click the following link for the text of Administrative Resolution CPT-RES-2019-005 as published by a third party. The Resolution entered into force on 26 November 2019.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.