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Investment & Legal Framework
The Code defines the concept of investment, ratifies
the respect for investment and for property, allows and
motivates signing of contract agreements between an
Investor and the State, foresees incentives and alterna-
tive dispute resolution strategies.
Investors already trust Ecuador. Around a dozen of in-
ternational companies from such sectors as industrial,
alimentary, textile, metallurgic and others have dem-
onstrated their interest in investing in the country the
overall amount that will exceed 4.000 millions of dollars
during coming years.
GENERAL INCENTIVES
FOR INVESTMENTS
Reduction of the Income Tax rate from 25% to 22%. 1%
every year, once the Code comes into effect.
Exempt frompayment of theminimumtax for: expenditures
associated with a new employment and salary increases,
acquisition of new assets aimed at increasing production
and technology, encouraging cleaner production and with
other incentives of this code.
For new companies: exemption from payment of the mini-
mum tax during first five years.
Exemption from payment of the tax imposed on foreign
exchange outflows2 associated with external payments for
external credits, with a maximum period of one year and
with a rate not superior to the one authorized by the ECB.
INCENTIVES FORNEW INVEST-
MENTS IN PRIORITIZED SECTORS
Total exemption from payment of the Income Tax and its
respective down payment, for 5 years, for new investments
in new prioritized sectors of the economy:
• Fresh and processed foods
• Forestry, agro forestry and related products
• Metal Mechanics
• Petrochemical sector
• Pharmaceutical sector
• Tourism
• Renewable energies
• Logistic services
• Biotechnology and applied software
Arch by night in Quito
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