Ecuador Assembly Approves Specific Tax Measures on Security Contributions, Considers VAT Increase Proposal

The Ecuadorian National Assembly Feb. 7 announced the approval of security contribution taxes and consideration specific VAT related articles proposed by the executive. The announcements include the approval of measures to: 1) establish security contribution rates between 5 percent and 25 percent for banks based on 2023 profits; 2) set a one-time temporary security contribution of 3.5 percent of the company’s profits for the 2022 tax year; 3) modify the remittance tax on foreign currency outflows (ISD) to 5 percent; and 4) implement a 5 percent VAT rate on the local transfers of construction materials. The Assembly will reconsider a ...