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Temporary Contribution on Profits: Impact on Banks and Cooperatives

By: Atty. Gabriel Pinto Navarrete

Head of Tax Department


In a recent publication in the Official Registry Supplement No. 516, a significant new legislation for the Ecuadorian financial sector has been introduced: the Organic Law to Address Internal Armed Conflict, Social and Economic Crisis. This regulation establishes a temporary contribution on the profits of banks and savings and credit cooperatives.

Who are the taxable subjects?

The entities required to contribute are banks and savings and credit cooperatives that are tax residents in Ecuador, including foreign branches domiciled in the country, which have recorded taxable profits during the fiscal year 2023.

Temporality and Tax Base

The contribution must be paid during the fiscal year 2024, based on the profits taxed with the income tax from the previous year (2023).

Scale of Rates for Taxable Profits:


Taxable Profit



Less than USD 5,000,000.00



More than USD 5,000,000.00 up to USD 10,000,000.00



More than USD 10,000,000.00 up to USD 50,000,000.00



More than USD 50,000,000.00 up to USD 100,000,000.00



More than USD 100,000,000.00


Payment Deadline

All taxable subjects must fulfill their tax obligation no later than May 31, 2024.

Important Considerations

It is crucial to bear in mind that the payment of this contribution will not be deductible from income tax, and no payment facilities will be offered.


This new tax scheme seeks to contribute to solving the current social and economic crisis, demanding an extra contribution from financial entities based on their profits. For more information and detailed advice on how this law affects your entity, do not hesitate to contact Meythaler & Zambrano. Our team of experts is ready to assist you with personalized advice and tailor-made solutions.

Profits taxed income tax


aviso legal

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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