Below, we summarize regulations applicable to Outflow Tax (ISD):
- Circular NAC-DGECCGC24-00000010 issued by the Internal Revenue Service
The reform of Ecuador’s National Tariff due to the implementation of the VII Amendment to the Harmonized System affected several tariff subheadings included in Resolution CPT-03-2012 and its subsequent reforms. This resolution establishes the subheadings which importation generated ISD tax credit for income tax payment purposes until December 31, 2024.
Through Circular NAC-DGECCGC24-00000010, the Internal Revenue Service communicated that the tax credit benefit remains valid until December 31, 2024, for goods affected by the VII Amendment. To identify the affected subheadings, the Interinstitutional Technical Committee issued report CPT-CTI-2024-001-I, which detailed the alignment of subheadings from the VI to the VII Amendment.
Therefore, the ISD paid on the importation of goods listed in Resolution CPT-03-2012 and its reforms retains its tax credit status, as per the alignment performed by the Interinstitutional Technical Committee. This information can be consulted at the following link: CIRCULAR NAC-DGECCGC24-00000010
- Ministerial Agreement 047 Issued by the Ministry of Economy and Finance
In accordance with Executive Decree 468, the Ministry of Economy and Finance (MEF) established the tariff subheadings subject to reduced ISD rates starting January 1, 2025.
The ISD rate will be 0% for January, February, and March 2025. Beginning April 2025, certain subheadings will be subject to a 0% rate (pharmaceutical sector), while others will be subject to a 2.5% rate (other sectors). The detailed list can be consulted at the following link: ISD – Registro Oficial-9-70
Tariff subheadings not listed in the Ministerial Agreement will be subject to the 5% ISD rate.
Andrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144