Ecuador

Ecuador - Civil Law
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Ecuador taxes

Want to setup a company? This will tell you about tax laws in Ecuador, you have to know about taxation for a Compañía Limitada which is the most common company type in Ecuador.

The country taxes income earned outside the borders independently then it it was derived locally. Theheadline standard rate for offshore income, from our research, and these things do change, is 0%. EC may have exemptions to remit foreign earned profits accrured abroad. Taxes are very reasonable in Ecuador as the income corporate tax rate is 22%. This ranks Ecuador as 86th overall in terms of corp. taxation rate internationally. . .

The value added tax (VAT) rate in Ecuador is 12.00%, which ranks Ecuador as 86th when compared to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 11.15% to the equivalent of a social security fund and an employee will contribute 9.45%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 306hours. Contributing to this is the number of yearly labor tax payments, which is 13 in EC.

Thin capitalization standards are in effect. Thin capitalisation refers to any sort of restrictions on a business and the debt-to-asset ratios. A dividend is payments of an earnings of the legal entity, voted on by the board, to shareholders.Dividends can be either shares of stock, cash payments, or other property. The capital gains rate in ECis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest witholding rate is estimated at 5%-10%This means that the taxman expects Compañía Limitada's to pay tax on at least 5%-10% of payments abroad for interest payments. The dividends witholding rate is 0This means that the taxman expects Compañía Limitada's to automatically withhold 0 of payments offshore for for dividend payments. The royalties witholding rate 5%-15% Which means that the tax authorities expects legal entities to automatically withhold 5%-15% of payments abroad for royalty payments.
There is no known tax on wealth in Ecuador. There are inheritance taxes in EC placed on an estate. We are aware of widely used credits for innovation spend that include tax incentives in Ecuador.

The above is not tax or legal advice for your individual circumstances. We are able to to help you find to an expert in Ecuador who can get you an answer. Contact us today. Click the free consultation button above.

It takes approximately 108 hours to file and prepare documents for a Ecuador Civil Law.
The corporate tax is approximately 22% which is 86 in the world.

Owners of a company in Ecuador are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.

The vat rate in Ecuador is 12% which ranks 61 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
19Tax treaties
22%Offshore Tax
22%Corp rate
-Loss carryback years
108Corporate time
12%VAT rate
0%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in
Ecuador

We can help you form a company in Ecuador. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Ecuador, which is required by law.

We can help you with your incorporations needs for an initial payment of just $1000.

Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.

Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.

Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.

Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.

Ecuador Tax Treaties

CountryTypeDate signed
Germany
DTC 1982-12-07
Sierra Leone
DTC 2013-06-27
Belgium
DTC 1996-12-18
Uruguay
DTC 2011-05-26
Colombia
DTC 2004-05-04
Italy
DTC 1984-05-23
France
DTC 1989-03-16
Chile
DTC 1999-08-26
Mexico
DTC 1992-07-30
China
DTC 2013-01-21
Argentina
TIEA2011-05-23
South Korea
DTC 2012-10-08
Costa Rica
TIEA2013-06-04
Qatar
DTC 2014-10-22
Brazil
DTC 1983-05-26
Spain
DTC 1991-05-20
Canada
DTC 2001-06-28
Romania
DTC 1992-04-24
Switzerland
DTC 1994-11-28

Country Info

National Flag of
República del Ecuador (spa)
Currency
USD
Area Code
+593
Capital
Quito
Region
South America
Native Languages
Spanish