Ecuador's National Assembly Considering Tax Reform Bill

Ecuador's National Assembly is considering a draft tax reform bill. The main measures include:

• The replacement of the special economic development zones with a new free trade zone regime with the following tax benefits:
  • a 0% income tax rate for five years, followed by a 15% rate for the remaining time of zone users' concession;
  • an exemption from VAT, remittance tax, taxes on foreign trade, and other taxes on transactions in free trade zones; and
  • VAT refunds on purchases from suppliers outsid…