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These investments have to be developed under any
jurisdiction of the country, except Quito, Guayaquil
and Cuenca.
INCENTIVES FOR
MEDIUM-SIZED COMPANIES
They can benefit from additional Income Tax deduc-
tions applied to expenditures and investments asso-
ciated with the following activities:
• Technical education and training aimed at inves-
tigation, development and technological innovation
(up to 1% of salary and wage expenses per year).
• Expenditures aimed at boosting production of the
company (up to 1% of sales).
• Promotional expenses of the company and its
products (up to 50% of promotional and advertising
expenses).
INCENTIVES FOR MICRO
AND SMALL COMPANIES
Governmental programs of co-financing of produc-
tion improvements, innovation, quality, export offer
and its promotion.
Programs of co-financing of entrepreneurship and
innovation.
INCENTIVES FOR
GREEN PRODUCTION
To calculate the Income Tax, additional deduction of
100% will be applied to costs associated with such
activities as purchasing of machinery and equipment
for cleaner production ,implementation of systems
TERRITORIAL INCENTIVE
Those companies that develop investment in run-
down areas could benefit from the additional deduc-
tion of 100% from their expenses related to new em-
ployment generated in the area, for 5 years.
INCENTIVE TO REDUCE
CREDIT COSTS
of renewable energies (solar, wind or similar) or for
mitigation of the environmental impact.
There has been eliminated the obligatory retention
of the Income Tax on interest payments outside
the country associated with credits provided by
international financial institutions.
The benefit is not applied to situations when
credits are provided by institutions located in fiscal
paradises.
INCENTIVES IN ZEDE
(Special zones for economicdevelopment)
Additional reduction by 5 percentage points of the
Income Tax, for administrators and operators of
these areas on a permanent basis. If they belong
to a preferred sector and it’s a new investment, 0%
tariff is applied.
0% VAT will be applied to imported goods.
Foreign goods will be free from paying any duties
while they remain within this area.
Both administrators and operators will have a tax
credit for their local purchases of services, con-
sumables and raw materials used for production
processes.
Exemption from payment of the tax associated with
foreign exchange outflows on imports and foreign
payments associated with external financing.
INCENTIVES FORCAPITALOPEN-
INGOF PRIVATE COMPANIES
Those companies that decide to open their capital
and sell shares to their employees will enjoy the fol-
lowing benefits:
Rafael Correa and Philippe Baril when reaching
the agreement to build a new airport in Quito
Investment & Legal Framework