🇪🇨 Ecuador · Taxes
Taxes in Ecuador
Residents of Ecuador pay tax on their worldwide income, while non-residents pay tax only on income from Ecuadorian sources.
In Ecuador, income earned abroad by individuals who are residents of the country, both local and foreign, is taxable. Non-residents pay tax only on income from Ecuadorian sources.
The tax system
Income earned abroad by individuals who are residents of Ecuador, both local and foreign, is taxable.
Non-residents are taxed on income from Ecuadorian sources regardless of their domicile or place of residence. On income from local sources, non-residents pay income tax at 25%, which is withheld at source.
Main rates
- Personal income tax: 5-35%.
- Corporate income tax: 25%.
- VAT: 12%.
The exact tax burden depends on your situation. We will go through your case during a free consultation.
Features of the tax system
Progressive personal income tax
The rate runs from 5% to 35% depending on the amount of income.
A single rate for non-residents
Income from Ecuadorian sources earned by non-residents is taxed at a flat 25%, withheld at source.
Moderate VAT
The VAT rate in Ecuador is 12%.
FAQ
Is a resident of Ecuador taxed on income earned abroad?
How are non-residents taxed?
What is the personal income tax rate in Ecuador?
What is the corporate income tax rate?
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