Ecuador
Corporate Tax Guide
Time of Update: 4/06/2026
Ecuador's tax system includes several important taxes that impact both businesses and individuals. Corporate Income Tax (CIT) rates range from 22% to 28%, depending on a company’s shareholder structure and compliance with disclosure rules. Personal Income Tax (PIT) is applied at a rate of 37%, with monthly withholdings for employment income and voluntary prepayments allowed for other types of income. The Value-Added Tax (VAT) is levied at 15% or 0%, with exemptions for specific goods and services such as certain agricultural products, transfers of shares, and digital services. Ecuador also imposes a 10% Capital Gains Tax on transfers of equity rights. Additionally, a 5% Remittance Tax is applied to money transfers abroad, including bank transfers and payments, with some exemptions for dividends and foreign loans. This tax structure aims to regulate both domestic and international financial activities while providing certain exemptions for key sectors.
Ecuador Corporate Income Tax (CIT)
General CIT Rate:
Corporate Income Tax (CIT) rates vary depending on the company’s shareholder structure and disclosure compliance, with rates of 22%, 25%, or 28%.
CIT Return Due Date:
Between April 9 and April 28 each year.
CIT Payment Due Date:
Between April 9 and April 28 each year.
CIT Estimated Payment Due Date:
NA
Ecuador Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
0/2/10
None-Resident Withholding Tax (Dividend/Interest/Royalty):
10/25/25
Ecuador Value-Added Tax (VAT)
General VAT Rate:
15
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Ecuador Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
Gains from the transfer of equity rights, such as shares, are taxed at a rate of 10%.
Ecuador Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
23.34%
Composite Effective Marginal Tax Rate:
18.60%
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TKEG Expat ™ (US) Ecuador Corporate Tax Guide
1.
Ecuador Corporate Income Tax (CIT)
In Ecuador, taxes encompass several key categories that businesses and individuals must be aware of. Corporate Income Tax (CIT) rates vary depending on the company’s shareholder structure and disclosure compliance, with rates of 22%, 25%, or 28%. The CIT return and final payment are due between April 9 and April 28 each year. Businesses are allowed to make voluntary CIT prepayments.
2.
Ecuador Personal Income Tax (PIT)
For personal income tax (PIT), the rate is 37%, with tax returns and final payments due between March 10 and March 28 annually. Employment income is subject to monthly withholdings, while individuals can also make voluntary prepayments for other income types.
3.
Ecuador Capital Gains Tax (CGT)
Capital Gains Tax (CGT) in Ecuador applies to both corporations and individuals at a rate of 10% for gains generated from the transfer of equity rights, such as shares.
4.
Ecuador Value-Added Tax (VAT)
The Value-Added Tax (VAT) is imposed at either 15% or 0% on goods and services. There are several exemptions from VAT, including transfers of shares, digital services for creating national audiovisual content, and certain agricultural goods. Goods like milk, meat, sugar, and flour are among those taxed at a 0% rate.
5.
Ecuador Remittance Tax
Ecuador has a Remittance Tax on the transfer of money abroad, levied at a 5% rate. Initially reduced in 2022 to 3.5%, the rate was set to decrease to 2% by 2024. However, the 5% rate was reintroduced in April 2024. This tax applies to transfers made via cash, checks, or couriers, with some exemptions available, such as for dividends and foreign loans.
