Law For Simplification And Progressivity Of The Tax Regime
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Below you will analyse the Law for Simplification and
Progressivity of the Tax Regime published on December 31, 2019 in
the Supplement of the Official Registry 111, amended the Internal
Tax Regime Law.
Dividends distributed to individuals with tax residence in
Ecuador and entities and individuals located abroad are subject to
income tax. Only dividends distributed to entities with tax
residence in Ecuador or permanent establishments located in Ecuador
are exempted from income tax.
The taxable income is equal to 40% of the dividend effectively
distributed. The concept of global…