January 3, 2022
Ecuador's new tax reform repeals exemption for interest paid on Government debt
The tax reform repeals the exemption for interest income from Government debt instruments.
Ecuador's new tax reform, enacted on November 29, 2021, repeals the exemption for interest income from Ecuadorian Government debt instruments. Under the provision, the interest income will be subject to 25% withholding tax rate (35% if the income is remitted to a tax haven jurisdiction). The change is effective upon enactment. For more on the tax reform, see Tax Alert 2021-2309.