Americas · Tax guide
Ecuador
Ecuador taxes companies at 25%, offers the RIMPE regime to businesses with income up to $300,000, charges VAT at 15%, and taxes money sent abroad through the 5% currency outflow tax. Companies must also share profit with employees. Taxes are administered by the Internal Revenue Service (SRI).
At a glance
- Corporate income tax
- 25%
- RIMPE regime
- $300,000
- VAT
- 15%
- Currency outflow tax
- 5%
- Withholding on services abroad
- 25%
Plus employee profit sharing
Income limit for the simplified regime
Standard rate
On payments abroad
Before treaty relief
Income tax and profit sharing
Companies pay 25%. Businesses with income up to $300,000 can use the RIMPE simplified regime, paying a small tax on gross income. Employers must also share profit with employees before tax.
VAT and e-invoicing
VAT is 15%, filed monthly (six-monthly for some RIMPE taxpayers). Electronic invoices authorised by the SRI are mandatory for all taxpayers.
Payments abroad
Royalties and services paid abroad carry 25% withholding, and the transfer itself carries the currency outflow tax (ISD) of 5%. Treaties can reduce the income tax part.
Key dates
- Monthly, by RUC digitVAT and withholding returns
- AprilCorporate income tax return
Figures and sources
5 figures- Corporate income tax rate25%Under professional review
- Annual income limit for the RIMPE simplified regime for entrepreneurs$300,000Under professional review
- VAT rate15%Under professional review
- Currency outflow tax (ISD) on payments abroad5%Under professional review
- Withholding on royalties and services paid to non-residents25%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Ecuador based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Ecuador (an Ecuadorian tax adviser) before making compliance decisions.