Plenary of the Ecuadorian Assembly completes first debate on tax reform presented by the Executive Branch
18 noviembre 2021


On November 17, the plenary of the Ecuadorian Assembly approved in first debate the bill for Economic Development and Fiscal Sustainability after the Covid-19 pandemic. Based on the report prepared by the Economic Development Committee, the Assembly members of the different political parties expressed their positions on the government’s proposal and made observations to be considered by the legislative board in its analysis prior to the second and final debate in the chamber. The text was again referred to the Economic Development Committee in order to prepare the report for the second debate of the text, which could take place in the short term.

In the plenary meeting, the Pachakutik (opposition) bench pointed out that the provisions of articles 15 to 28 of the bill, related to the implementation of the Voluntary, Unique and Temporary Tax Regime for Regularization of Assets Abroad, could allow the indiscriminate entry of resources into Ecuador, highlighting those of possible illicit origin, for which reason they requested the exclusion of the articles contemplated in the final text to be discussed in the second debate.

It should be recalled that on this point, the law proposes to implement a process of regularization of assets abroad, in order for the resources generated outside the country to be considered legitimate. To this end, the proposal establishes a progressive table to encourage early regularization. Those who do it until March 2022 will pay 3.5%, until June 4.5% and those who delay until December 31, 2022 will pay 5.5%.

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