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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty N/A N/A
Payroll Tax N/A There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees. Employers are required to pay 0.5% of payroll costs to the national training fund (SETEC) and 0.5% to the education credit program (IECE).
Social Security Employer Contribution 12.15% The employer’s contribution is equal to 12.15% of the gross salary. The minimum monthly wage used to calculate the contribution is USD 425 for the year 2022. Employers are also required to deposit one month's salary into a reserve fund each year beginning when an employee completes their second year of employment. The fund is managed by the social security administration but is not part of the social security program.
Social Security Employee Contribution 9.45% The employee’s contribution is equal to 9.45% of their gross salary. The minimum monthly wage used to calculate the contribution is USD 425 for the year 2022. Different contribution rates apply in specified economic sectors.
Property Tax 0.025% to 0.5% Urban property tax is levied annually by municipalities at progressive rates ranging from 0.025% to 0.5% of the cadastral value of the property as determined by the municipal government. For rural immovable property, the top rate is 0.3%.
Transfer Tax 1.00% Transfer tax is levied by the municipal governments on the transfer of immovable property at the rate of 1% on the higher of the transaction amount or the cadastral value of the property.
Stamp Duty N/A N/A
Excise Taxes Varies Excise taxes are levied on a number of products and certain services including tobacco products, alcohol, alcoholic beverages, soft drinks, vehicles, firearms, gambling, and others.
Customs Duty Varies Customs duties are levied on most goods imported into Ecuador at rates generally ranging from 0% to 25%. Duties are also levied on certain exports, including commodities such as cacao, bananas, and coffee.
Net Worth Tax 0.15% A municipal net worth tax is levied annually at a rate of 0.15% of net assets.
Remittance Transfer Tax 4.00% to 5.00% A remittance transfer tax applies at the rate of 5% on money transferred out of Ecuador. The tax rate is reduced in a phased manner from 5% up to 4% during the year 2022, which includes a reduction to 4.75% from 1 January 2022, 4.50% from 1 April 2022, 4.25% from 1 July 2022, and 4% from 1 October 2022. Further, effective 1 February 2022, a 0% remittance tax is levied on foreign currency outflows (ISD) where transfers are made abroad for the import of hydrocarbon fuels, biofuels, and natural gas by authorized taxpayers. Exemptions are provided for interest on long-term loans, dividends not paid to beneficiaries in tax-havens or low-tax jurisdictions (see Sec. 12.5.), and certain other transfers.
Municipal Business Tax 1.00% Companies engaged in commercial, industrial, or other economic activities are liable to pay municipal tax annually at a rate of 1% on a company’s subscribed capital.
Special Consumption Tax Varies A special consumption tax is levied on domestic and imported goods such as plastic bags, sugared, non-alcoholic, and carbonated drinks, etc.
Foreign Assets Tax 0.25% per month The foreign assets tax is levied at the rate of 0.25% per month (0.35% per month for assets held in a tax haven or low-tax jurisdictions) on the average monthly balance of cash deposits held in foreign entities by private entities registered in the stock market and regulated by the Superintendent of banks and companies.