25 January 2018 Ecuador approves a new Convention to Avoid Double Taxation with Russia Taxpayers should review the Convention's provisions, as they may qualify for benefits that were previously not available. The Ecuadorian National Assembly approved the Convention to Avoid Double Taxation and Fiscal Fraud between Ecuador and the Russian Federation. The Ecuadorian Assembly approved the Convention on December 14, 2017, and it was published in the Official Gazette on January 12, 2018. The Convention's provisions apply to each country's income tax, including tax on income derived from the sale of immovable goods. The Convention will allow income to avoid double taxation as follows: — In Ecuador: If an Ecuadorian resident obtains income that is subject to taxation in Russia, such income is exempt from Ecuadorian taxation. If the Ecuadorian resident receives interest, dividends and royalties that could be subject to tax in Russia, the tax paid in Russia can be deducted. — In Russia: If a Russian resident obtains income that triggers tax in Ecuador, the Russian resident may claim the tax amount paid in Ecuador as a tax credit. The tax credit amount may not exceed the Russian income tax. Under the Convention, the following income tax withholding tariffs apply to payments from Ecuador to Russia:
Document ID: 2018-0189 | ||||||||||||||||||||||||||||||||||
