Ecuador Implements Tax Hikes, Including 15% VAT, to Boost National Security Funding

• Ecuador is increasing the value-added tax rate to 15 percent from April 1, 2024
• The law also introduces a five percent tax on domestic supplies of consumption materials
• A crisis levy of 3.25 percent on businesses’ profits from 2022 will be introduced
• A progressive windfall tax on banking institutions and cooperatives’ profits will range from 5 to 25 percent
• A five percent tax on capital outflows will be levied, with specific regulations on transfers abroad

Source: answerconnect.cch.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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