- Ecuador’s Legislature swiftly approved a Tax Reform in response to the declared Internal Armed Conflict, with subsequent issuance by the President.
- The Tax Reform introduces adjustments to tax rates, including an increase in the Value Added Tax (VAT) rate, now set permanently at 13% but temporarily increased to 15% effective April 1, 2024.
- The Remittance Tax rate has also been raised from 3.5% to 5% for cross-border currency transfers, with flexibility for sector-specific modifications within the maximum 5% rate stipulated by law.
Source GlobalVATcompliance
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