DETAILS
MEDIA:
In the first quarter of 2022, Ecuador approved 27 investment contracts. Of these, 74.1% corresponds to national investment and 25.9% to mixed investment (national and foreign). According to the Ministry of Production, Trade, Foreign Trade, Investment and Fisheries, the total amount reached USD 420 million, which represents an 86% increase in local investment in relation to the same period of 2021.
The media El Comercio attended a breakfast organized by CorralRosales and Softlanding in which our partner Andrea Moya and the Undersecretary of Investment of the Ministry of Production, Marco Moya gave a talk on the subject.
As Marco Moya explains, “with the signing of investment contracts, a company commits to make new investments and the State provides legal certainty. This applies to any sector of the economy. The main objective is to increase production in Ecuador and generate employment”.
It is important to know that these contracts grant tax incentives to new investments, such as a five-point reduction in the income tax rate, exemption from foreign exchange tax (ISD) and foreign trade taxes on the import of raw materials and capital goods necessary for the execution of the investment.
Our partner, as an expert in investment contracts, explains that “these benefits and incentives apply for the duration of the contract and must not exceed the amount of the investment”. “The agriculture, livestock, forestry and fishing, manufacturing, and transportation and storage sectors account for 91% of the investment contracts approved in the first quarter of 2022,” she adds.