Ecuador's New Rules for Taxation of Dividends and Undistributed Profits

Ecuador introduced new rules on the taxation of dividend/profit distributions by resident companies and permanent establishments as part of the Organic Law on Social Transparency, which was published in the Official Gazette on 28 August 2025. The measures of the law were regulated by Executive Decree No. 191 of 27 October 2025.
Key points of the new rules include:
- A standard withholding tax…