- The main objective of the Organic Law to address internal armed conflict, social and economic crisis in Ecuador is to establish a legal framework to address situations derived from internal armed conflict, as well as social and economic crises affecting the country.
- The new Law was promulgated on March 12, 2024, detailing the following taxes:
- Contribution to the armed conflict: 3.25% contribution based on the taxable income of 2022 for the years 2024 and 2025.
- VAT rate modified to be between 13% and 15%, effective from April 1, 2024.
- Exit tax rate set at 5% starting from April 1, 2024.
- 5% VAT rate on local transfers of construction materials.
- Temporary contribution on profits of banks and credit unions ranging from 5% to 25% based on taxable profits of 2023.
Source: russellbedford.com.ec
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
