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04 January 2022

Ecuador’s new tax reform repeals exemption for interest paid on Government debt

The tax reform repeals the exemption for interest income from Government debt instruments.

Ecuador’s new tax reform, enacted on 29 November 2021, repeals the exemption for interest income from Ecuadorian Government debt instruments. Under the provision, the interest income will be subject to 25% withholding tax rate (35% if the income is remitted to a tax haven jurisdiction). The change is effective upon enactment. For more on the tax reform, see EY Global Tax Alert, Ecuador enacts tax reform, dated 23 December 2021.

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For additional information with respect to this Alert, please contact the following:

EY Addvalue Asesores Cia. Ltda., Quito

EY Addvalue Asesores Cia. Ltda., Guayaquil

Ernst & Young LLP (United States), Latin America Business Center, New York

Ernst & Young Abogados, Latin America Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Document ID: 2022-5002

 
 

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