An amendment provides a tax exemption for outbound payments arising from direct credit, credit lines, or deposits. These remittances are not subject to the “capital outflow” tax (Impuesto a la Salida de Divisas—ISD) when the funds come from international financial institutions or specialized non-financial entities located in a jurisdiction or country that has been “qualified” or approved by the Superintendence of Banks, Ecuador (SBE).
The amendment—published in Ecuador’s official gazette No. 567 (18 August 2015)—provides new opportunities for SBE-approved foreign financial institutions or specialized non-financial entities to grant credit to Ecuadorian financial institutions.
Financial entities operating in the Ecuadorian financial system will benefit from the ISD exemption when the payment resources originate from an SBE-approved international financial institution or specialized non-financial entity. The ISD exemption will apply to payments arising from direct credit, credit lines or deposits beginning 5 May 2015. The exemption, however, is not available with respect to payments that are in excess of the interest rate, measured with reference to the active interest rate on the date of the credit disbursement.
To be eligible for the ISD exemption, the following requirements must be satisfied:
For more information, contact a tax professional with KPMG’s Americas Center:
Devon Bodoh | (202) 533-5681 | firstname.lastname@example.org
Alfonso A-Pallete | (305) 913-2789 | email@example.com
Or contact a KPMG tax professional in Ecuador:
Gino Erazo | (593) 4 - 229-0697 | firstname.lastname@example.org
Karina Rubio | (593) 4 - 244-4225 | email@example.com
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