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Ecuador Tax Incentives to Attract Investment in Audiovisual and Energy Sectors — Orbitax Tax News & Alerts

The Ecuadorian government submitted a draft bill in the National Assembly on 24 November 2022 that provides incentives for digital and audiovisual transformation. The incentives include:

  • A special regime providing a customs tax exemption on the import of qualifying capital goods for audiovisual productions;
  • A remittance tax exemption on payments made for carrying out audiovisual production activities in Ecuador, including payments for the importation of goods and equipment related to the activity and on service payments to non-residents providing related audiovisual services;
  • A withholding tax exemption on service payments to non-residents providing audiovisual services; and
  • A VAT exemption on qualifying digital services used for the development, pre-production, production, post-production, and distribution of national audiovisual content.

In addition to the digital and audiovisual incentives, the draft bill also provides for the introduction of a 10-year income tax exemption for qualifying investments in the generation of non-conventional renewable energy and natural gas industrialization.