Ecuador's headline corporate income tax (CIT) rate is 22%, 25%, or 28% depending on shareholder structure.
The headline personal income tax (PIT) rate is 37.
The standard VAT/GST (or equivalent consumption tax) rate is 15. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Since fiscal year 2015, an Ecuadorian individual's tax residency turns on presence in Ecuador exceeding 183 days (including sporadic absences, consecutive or not) within the same fiscal year or within a 12-month period spanning two fiscal years, plus consideration of economic and personal interests. A company is resident based primarily on Ecuadorian incorporation and main place of business, with secondary criteria (location of economic activity) if primary criteria don't resolve the question. A temporary residence regime for qualifying nonresident individuals allows Ecuador-source-only taxation for five years.
Ecuador's CFC regime, introduced by the Economic Efficiency and Job Creation Law effective January 1, 2024, applies where an Ecuador tax-resident individual (the "ultimate beneficiary") holds an effective participation of 25% or more (capital, voting rights, or profit/dividend entitlement) in a foreign entity or PE, and that entity's effective tax rate is below 60% of the applicable Ecuadorian rate (approximately 15%, given Ecuador's 25% standard corporate rate). Specified passive-type income is attributed to the individual beneficiary and taxed currently regardless of distribution, with a credit for foreign tax already paid; income already taxed under another Ecuadorian regime (e.g., non-resident dividend withholding) is excluded to avoid double taxation.
Interest deductibility on related-party loans is capped at 20% of the fiscal year's pre-tax profit (before mandatory employee profit-sharing, interest, depreciation, and amortization are deducted) - an EBITDA-style limitation rather than a fixed debt-to-equity ratio.
Ecuador has entered double tax treaties with Argentina (limited to air transportation), Belarus, Belgium, Brazil, Canada, Chile, China, Germany, France, Italy, Japan, Mexico, Qatar, Romania, Singapore, South Korea, Spain, Russia, Switzerland, the UK, the UAE, and Uruguay, plus the Andean Community's Decision 578 multilateral framework (Bolivia, Peru, Colombia). Treaty benefits have applied automatically (without the prior USD 560,000/year cap) since November 29, 2021.