Ecuador Tax Agency Posts Guidance on Various Tax Incentives

The Ecuadorian Internal Revenue Service Feb. 20 posted a guidance on various tax incentives. The announcement includes: 1) the additional 50 percent income tax deduction for employers that hire workers between 18 and 29 years old, with an increase to 75 percent for hiring specified graduates; 2) incentives for investments, including the five-year zero percent income tax rate for free trade zone operators, and the tax exemption for investments in tourism projects that exceed US$100,000, for up to seven years; 3) the 15 percent withholding tax reduction on payments abroad for tourism services and cultural events; 4) an additional deduction ...