The tax reform repeals the exemption for interest income from Government debt instruments.
Ecuador’s new tax reform, enacted on 29 November 2021, repeals the exemption for interest income from Ecuadorian Government debt instruments. Under the provision, the interest income will be subject to 25% withholding tax rate (35% if the income is remitted to a tax haven jurisdiction). The change is effective upon enactment. For more on the tax reform, see EY Global Tax Alert, Ecuador enacts tax reform, dated 23 December 2021.
For additional information with respect to this Alert, please contact the following:
EY Addvalue Asesores Cia. Ltda., Quito
- Javier Salazar
- Alexis Carrera
- Alex Suarez
EY Addvalue Asesores Cia. Ltda., Guayaquil
- Carlos Cazar
- Eduardo Góngora
Ernst & Young LLP (United States), Latin America Business Center, New York
- Lucas Moreno
- Ana Mingramm
- Pablo Wejcman
- Enrique Perez Grovas
Ernst & Young Abogados, Latin America Business Center, Madrid
- Jaime Vargas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
- Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
- Raul Moreno, Tokyo
- Luis Coronado, Singapore
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
