Ecuador Proposes Increased Tax Rate for Certain Companies

Ecuador is currently considering a draft tax law submitted on 28 November 2014, that would introduce a separate increased tax rate for certain companies among other measures.

Instead of the current corporate tax rate of 22%, a 25% tax rate would apply to a portion of the companies income in proportion to the shareholdings in the company of shareholders resident in tax havens or low-tax jurisdictions. If such shareholdings exceed 50%, all income of the company would be subject to the increas…