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Tax Guide for Tourism Activities in Ecuador

by Atty. Gabriel Pinto Navarrete 

Head of Tax Department

 

We are pleased to share with you the promulgation of the "Organic Law for the Strengthening of Touristic Activities and Promotion of Employment," published on March 25, 2023, in the Official Registry, Supplement No. 525. This law introduces tax reforms aimed at revitalizing the tourism sector.


Scope of Application

The law applies to individuals and entities, whether from the public or private sector, national or international, involved in touristic activities in Ecuador. Non-profit entities that carry out touristic activities for third parties are excluded.


Defined Touristic Activities

Include accommodation services, food services, travel agencies, touristic transportation, event organization, and more, covering everything from convention centers to theme parks and resorts.


3 Key Tax Provisions

15% Withholding on Payments Abroad

Applicable to payments for artistic and cultural services abroad, with specific exceptions for tax havens.


Reduced VAT to 8%

Presidential authority to reduce VAT up to 12 days a year, subject to approval by the Ministry of Economy and Finance.


ISD Exemption

For payments abroad made by airlines with national and international operations, subject to certain conditions.


Furthermore, do not miss our entry on "Reduced Working Hours in the Tourism Sector: 2024 Guide" for a comprehensive view of the support measures for the tourism sector.


At Meythaler & Zambrano Lawyers, we are committed to offering the highest level of legal advice. If you require more information or assistance on how this legislation impacts your operations, please contact us. Our team is ready to support you.



Andean Cordillera
Tax treatment of activities related to tourism in Ecuador


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Legal disclaimer

The content of this blog is provided for informational and educational purposes only and should not be considered legal advice. Regulations in Ecuador are subject to changes and updates that may affect the applicability and accuracy of the content published here. We do not guarantee that the information presented is accurate, complete or current at the time of reading. Therefore, past postings should not be construed as necessarily reflecting current regulations. We strongly recommend that you consult with our qualified attorneys for specific and personalized advice.

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