Global Tax Alert (News from Americas Tax Center) | 9 February 2015

Ecuadorian IRS issues resolution with new list of tax haven jurisdictions

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The Ecuadorian Internal Revenue Service (IRS) has issued a resolution that lists the tax haven jurisdictions and sets forth when a jurisdiction will be a preferential tax regime (PTR) or low-tax jurisdiction (LTJ).

Tax havens

  • American Samoa
  • Anguilla
  • Antigua and Barbuda
  • Aruba
  • Ascension Island
  • Azores Islands
  • Barbados
  • Belize
  • Bermuda
  • Bonaire
  • British Virgin Islands
  • Brunei Darussalam
  • Campione d'Italia
  • Cayman Islands
  • Channel Islands
  • Christmas Island
  • Colony of Gibraltar
  • Commonwealth of the Bahamas
  • Commonwealth of Dominica
  • Cook Islands
  • Curacao
  • Federation of Saint Kitts and Nevis
  • French Polynesia
  • Greenland
  • Guam
  • Hashemite Kingdom of Jordan
  • Island Saint Pierre and Miquelon
  • Isle of Man
  • Kingdom of Bahrain
  • Kingdom of Swaziland
  • Kingdom of Tonga
  • Labuan
  • Luxembourg
  • Macau
  • Madeira
  • Montserrat
  • Myanmar
  • Nigeria
  • Niue
  • Ostrava Free Zone
  • Palau
  • Pitcairn Islands
  • Principality of Andorra
  • Principality of Liechtenstein
  • Principality of Monaco
  • Puerto Rico
  • Qeshm Island
  • Republic of Albania
  • Republic of Angola
  • Republic of Cape Verde
  • Republic of Cyprus
  • Republic of Djibouti
  • Republic of Guyana
  • Republic of Kiribati
  • Republic of Liberia
  • Republic of Maldives
  • Republic of Malta
  • Republic of the Marshall Islands
  • Republic of Mauritius
  • Republic of Nauru
  • Republic of Panama
  • Republic of San Marino
  • Republic of Seychelles
  • Republic of Trinidad and Tobago
  • Republic of Tunisia
  • Republic of Vanuatu
  • Republic of Yemen
  • Saint Vincent and the Grenadines
  • San Martin
  • Santa Elena
  • Santa Lucia
  • Socialist Democratic Republic of Sri Lanka
  • Solomon Islands
  • State Commonwealth of Grenada
  • State of Kuwait
  • Sultanate of Oman
  • Svalbard
  • Territory of Cocos
  • Territory of Norfolk Island
  • Tokelau
  • Trieste (Italy)
  • Tristan da Cunha
  • Turks and Caicos Islands
  • Tuvalu
  • United Arab Emirates
  • United States Virgin Islands
  • Western Samoa

Exclusion criteria

The Ecuadorian IRS might exclude any country or regime from the aforementioned list if:

  • A treaty to avoid Double Taxation is in force and the treaty includes a special information exchange clause or requires the other country's law to not include banking confidentiality, securities or other regulations that prohibit sharing information with the Ecuadorian IRS
  • Their tax law is reformed to comply with international standards

PTR

A PTR will be treated as a tax haven if the effective tax rate (or similar taxes) is below 60% in relation to the Ecuadorian corporate income tax (CIT) rate of 13.2%.

LTJ balance consulting and account movements

An LTJ will have the same treatment as a TH if:

  • There is no substantial economic activity
  • The effective tax rate (or similar taxes) is below 60% in relation with the Ecuadorian CIT rate of 13.2%.

For additional information with respect to this Alert, please contact the following:

Addvalue Asesores Cia. Ltda., Quito, Ecuador
  • Javier Salazar
    +593 2 2555 553
    javier.salazar@ec.ey.com
  • Iván García
    +593 2 2555 553
    ivan.garcia@ec.ey.com
  • Alexis Carrera
    +593 2 2555 553
    alexis.carrera@ec.ey.com
Addvalue Asesores Cia. Ltda., Guayaquil, Ecuador
  • Carlos Cazar
    +593 4 2634 500
    carlos.cazar@ec.ey.com

EYG no. CM5194