(1) This Agreement shall apply to taxes on income imposed on behalf of each Contracting State, its political subdivisions or local authorities, irrespective of the manner in which they are levied.
(2) There shall be regarded as taxes on income all taxes imposed on total income or on elements of income including taxes on income from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises.
(3) The existing taxes to which the Agreement shall apply are in particular:
- (a) in the case of the Islamic Republic of Iran;
- (i) the income tax;
- (b) in the case of Ecuador;
- (i) income tax of individuals;
- (ii) income tax of companies and any other similar entities;
(4) The Agreement shall apply also to any identical or substantially similar taxes, which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes, which have been made in their respective taxation laws.