By: Atty. Gabriel Pinto Navarrete
Head of Tax Department
On March 12, 2024, significant reforms to the Foreign Currency Exit Tax (ISD) in Ecuador were announced, as published in the Official Registry Supplement No. 516.
These modifications establish an increase in the ISD rate from 3.5% to 5%, effective from April 1, 2024.
Key Changes in the ISD Rate
Until March 31, 2024, the applicable rate for the ISD will remain at 3.5%, as stipulated in Executive Decree No. 98 of December 29, 2023. Starting from April first, the rate will increase to 5%.
Context of the Reform
This update of the ISD rate is part of the Organic Law to Address Internal Armed Conflict, Social, and Economic Crisis, representing a fiscal adjustment aimed at responding to the current economic needs of the country.
Expected Impact
The ISD reform aims to adjust the tax burden in line with the economic and social challenges faced by Ecuador. This change in the rate is expected to have implications for individuals and companies conducting foreign currency transactions.
Additional Information
For more information, it is important to seek specialized legal advice that can provide precise guidance and strategies for proper tax planning during this period of changes. Our team of experts is ready to assist you with personalized advice and tailored solutions.
Commentaires