The Ecuadorian President’s Office May 23 announced the issuance of a decree proposing a new tax regime for special economic zones (SEZs) to attract investments. The proposed regime includes measures that would: 1) exempt corporate income taxes in SEZs for a period of 10 years for qualifying companies, and 15 years for qualifying companies in border sectors; 2) reduce the corporate income tax rate by 10 percent after expiration of the tax exemption period; 3) exempt taxes on foreign trade, with exceptions; 4) apply a zero-rated VAT to the acquisition of inputs, raw materials, and imported capital goods; and 5) ...
