- Payment facility up to 2 years on foreign trade taxes (for imported capital godos), exceeding US$10,000
- 3 % reduction of income tax for all types of companies
- Deferral of income tax payments up to 5 years for opening the capital of the company to the employees.
- 5 year exemption on the anticipated income tax for new companies, and for existing companies it doesn´t form part of the anticipated income tax calculation the incremental expenditures in the sectors that the Production Code incetivate for productive investments
- 10% reduction on the income tax over the amount reinvested on productive assets
- An additional 100% deduction on the expenses (depreciation) when acquiring machinery of cleaner production, which apply on the calculation of the Income Tax (Environmental Ministry Agreement 027)
- Exemption of the Currency Outflow Tax for loan payments (capital & interests) granted by financial institutions located abroad to finance investments provided by the Production Code. (The credit period must be greater than one year; the interest rate should not exceed the local credit lending rate of the Ecuadorian Central Bank in the date of registration of the loan. No exemption applies to payments related to loans granted by related parties or financial institutions incorporated or domiciled in tax havens);
- The SMEs, will have an additional deduction of 100% on the expenses for the calculation of the income tax when giving technical training, research and innovation (up to 1% of the expenditure on salaries ); market research and competitiveness (up to 1% of sales); travel, stay and trade promotion for the opening of new markets (up to 50% of costs and advertisement expenditures)
- Prioritized sectors: Fresh, frozen and industrialized foods, Petrochemicals, Metalworking, Agro forestry Chain and processed products, Tourism, Pharmaceutical, Renewable energy, Biotechnology and applied Software, Logistics and import substitution sectors.
- Import Substitution: Basic chemical substances, Pesticides and products for agricultural use; Soaps, detergents, perfumes and toilet preparations; radios, televisions and cell; clothing and textiles; chemical products; leather shoes; ceramic products; home appliances
- Exemption of the Income Tax for 5 years, since income is generated for all new investments made in priority sectors and import substitution sectors
To apply the incentives the investments should accomplish the following conditions:
–The company must be incorporated in the country since 2011
– New investment on one of the prioritized sector or in the import substitution sectors from Production Code
– Developed the Project outside the urban areas of Quito and Guayaquil
- Exemption on the Income Tax for 10 years to Basic Industries: Since the first year that directly and solely attributable to the new investment income is generated. This period shall be extended by two (2) years in the event that investments are made in border cantons.
List of Basic Industries: smelting and refining of copper and / or aluminum; steel foundry for the production of flat steel; oil refining; petrochemical industry; pulp industry; and construction and repair of naval vessels
For companies constituted before the creation of Production Code a deduction of an additional 100% on depreciation expenses on new and productive fix assets for 5 years, since the beginning of the uses of the productive asset, also if their activities are developed inside the urban areas of Quito and Guayaquil.
- The companies incorporated (outside the urbana reas of Quito and Guayaquil) since 2011 that made new investments on the prioritized sector or import substitutions, are exempted of the income tax for 5 years since income is generated
- Deduction of an additional 100% of the depreciation annual expense of the new and productive fixed assets for 5 years
- Taxpayers are exempt from paying the advance income tax; when their economic activity is exclusively related to the development of software or technology projects, and which stage of development is over one year.
- Taxpayers are exempt from paying the advance income tax; when their economic activity is exclusively related to agricultural productive projects in forestry and agro forestry forest species, with stage growth over one year (will be exempt during the tax periods that do not receive taxable income)
High potential development sectors:
- Mining: Iron, Steel and aluminun
- Forestry Sector: Pulp Paper
- Oil and Gas: Petrochemical
- Exemption from income tax for 10 years from the first year of income attributable to new investment is generated.
- If the investment is made in border cantons exemption from income tax will be for 12 years
The SME’s, for 5 years will have the right to deduct an additional 100% on the following expenses:
- Technical training
- Development and technological Innovation
- Technical Assitance, Market analysis and Competitiveness
- Technological assistance in process design, products, adaptation and implementation of processes
- Packaging design
- Development of specialized software
- Travel expenses, stays, for business promotion in business conferences and fairs
Special Economic Development Zones are demarcated areas of the country, identified as a customs destination for new investment activities and disaggregation technology transfer and innovation, industrial diversification and logistic services are developed.
We currently have two zones, corresponding to the locations of Eloy Alfaro (Esmeraldas), an industrial and logistics SEZ; and on the other Yachay (Urcuquí province of Imbabura) specializing in technological industrial and logistics. In addition, it plans to open another SEZ in Posorja, province of Guayas, for industrial activities, agro-industrial and logistics.
- Income tax of 17%
- Exemption from customs tariffs on foreign goods entering these areas for compliance with approved processes.
0% VAT on imported goods, to be exclusively used in the authorized zone or incorporated in one of the productive transformation processes.
- Tax credit for VAT paid on the purchase of raw materials, supplies and services from the country who join the production process
- Tax Exemption of Foreign Exchange Outflow due to imports of goods and services related to their authorized activity
- Tax exemption for the payment of external financing operations