Reduction of Several Taxes Tariffs

 

The President of the Republic, issued the Executive Decrees 643, 644 and 645 on January 10, 2023, by which the reduction of the following taxes tariffs was ordered:

1.    Gradual reduction of the Foreign Exchange Tax (ISD) according to the following schedule:


a.    As of February 1, 2023, the tariff of the Foreign Exchange Tax will be 3.75%. 
b.    As of July 1, 2023, the tariff of the Foreign Exchange Tax will be 3.50%. 
c.    As of December 31, 2023, the tariff of the Foreign Exchange Tax will be 2%.

2.    Reduction of the Value Added Tax (VAT) tariff from 12% to 8% levied on the provision of services related to tourism activities during the following holidays:

a.    Carnival: February 18, 19, 20 and 21, 2023.
b.    Easter: April 7, 8 and 9, 2023.
c.    All Souls’ Day and Cuenca Independence Day: November 2, 3, 4 and 5, 2023.


3.    Reduction of the Excise Tax (ICE) tariff for the following goods:

 

Specialist in Tax
Andrea Moya, partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144