Moreno Extends Tax Benefits Established Under Productive Development Law by 24 Months
21 agosto 2020

On August 20, the President of Ecuador, Lenín Moreno, issued Decree No. 1130, which extends for a further 24 months the period exempting priority sectors from paying income tax and the Foreign Exchange Exit Tax on capital goods, raw materials and dividends accruing from foreign investments in new productive activities, as established in the Productive Development Law. The decree will enter into force as of its publication in the Official Registry. 

The regulations also indicate that within 30 days of the effective date of the Decree, the Strategic Investment Promotion and Attraction Committee will review and adapt the parameters for investments applying for eligibility under the new incentives regime. 

It should be mentioned that in the regulations enshrined in the 2018 Law, the Executive branch established the procedures for companies wishing to claim such “benefits”. These new regulations define the concept of investment and distinguish between the new and old definitions, ensuring that both receive a different treatment.