Ecuador enacts tax reform

The tax reform establishes a new tax on corporations with a certain amount of assets, increases the tax rate on capital gains and reduces the income tax rate on income from new investments.

Ecuador published the tax reform law in the Official Gazette on 29 November 2021. It is enacted and effective as of that date.

New tax on certain companies

The law establishes a new tax for companies with assets of at least US$5 million as of 31 December 2020. Companies will pay the new tax in 2022 and 2023. Th…