Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/2/2012

Ecuador - Preferential tax regimes are identified 

August 2:   Ecuador’s tax administration has identified the following countries’ tax systems as providing “preferential tax regimes”—
  • Estonia—with respect to a corporate income tax imposed on distributed profits only
  • Bulgaria—with respect to the corporate income tax rate (10%)
  • Macedonia—with respect to the corporate income tax rate (10%)
  • Ireland—with respect to the corporate income tax rate (12.5%)
  • United States—with respect to limited liability companies (LLCs) whose owners are not U.S. residents and neither the LLC nor its owners are subject to federal income tax; also, for taxpayers located in Delaware, Nevada, Wyoming, and Florida who are not subject to state income tax
  • Montenegro—with respect to the corporate income tax rate (9%)
  • Serbia—with respect to the corporate income tax rate (10%)

Among other things, this determination means that any transaction that is entered into on or after the effective date of the Ley de Equidad Tributaria (Tax Equity Act) of 2008, with taxpayers located in any of these “low tax” countries or territories, will be considered a related-party transaction.


Read a July 2012 report (Spanish) [PDF 167 KB] prepared by the KPMG member firm in Ecuador: Regímenes fiscales preferentes




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