Ecuador President Issues Decree Updating Income Tax Reduction Thresholds, Simplified Regime for Entrepreneurs

The Ecuadorian President’s Office May 17 issued Executive Decree No. 742, announcing the 2023 income tax reduction thresholds, and updating rules for taxation under the Simplified Regime for Entrepreneurs and Popular Businesses (RIMPE). The announcement includes measures: 1) establishing the calculation procedure under the new personal expenses regime, for purposes of determining the maximum income tax reduction on gross annual income of up to US$300,000 for entrepreneurs, and US$20,000 for popular businesses; 2) setting the list of activities not eligible for the new tax regime; 3) updating the personal income tax tables with rates and thresholds for taxpayers subject to ...