Extension of the Enforcement Deadline of the Law for Environmental Promotion

On January 12th, 2020, the Constitutional Court of Ecuador issued the ruling 58-11-IN/22, by which the Law for Environmental Promotion and Optimization of State Revenue was declared unconstitutional for infringing the unity of subject matter principle.

The Constitutional Court ordered the delay of the effects derived from the ruling until December 31, 2023, aiming to avoid the creation of a severe regulatory gap related to tax matters and to guarantee legal certainty. However, neither the Executive, nor the National Assembly submitted to the Constitutional Court any information regarding the progress of the amendments needed to avoid such legal void.

Therefore, the Constitutional Court issued the verification order 58-11-IN/23 on November 1st, 2023, by which it extended the enforcement deadline for the Law of Environmental Promotion and Optimization of State Revenues until December 31, 2024. The deadline extension is only applicable to those norms that have not been amended, repealed, or replaced by other laws.

Among the articles that remain enforceable, we highlight the following:

  1. Article 10, clause 18 of the Internal Tax Regimen Law which regulates the deduction of expenses related to the acquisition, use or ownership of vehicles engaged in revenue-generating commercial activities.
  2. Unnumbered article added below the article 162 of the Equity Tax Law which regulates the right to use as tax credit for the payment of income tax, the Outflow Tax (ISD) paid on imports of raw material, supplies and goods employed in productive processes.


Andrea Moya, partner at CorralRosales
+593 2 2544144

NOTE: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.