Tax and compliance in Ecuador

Snapshot

Businesses in Ecuador register with the tax authority SRI and operate under a RUC. The value added tax, known as IVA, has a general rate of 15 percent, with a reduced 5 percent rate on some items and zero rating on basics such as exports and certain food and medicine. Corporate income tax has a general rate of 25 percent, rising to 28 percent where tax haven ownership is involved. A currency outflow tax applies to funds sent abroad.

Tax authority: Servicio de Rentas Internas (SRI)
VAT (IVA): General rate 15 percent; reduced 5 percent on some items; zero rated basics
Corporate income tax: General rate 25 percent; 28 percent where tax haven ownership is involved
Currency outflow tax (ISD): General rate 5 percent on funds sent abroad in 2026; reduced rates for some sectors

Fees and features as of 22 April 2026Last reviewed 22 April 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

As of 22 April 2026, a business in Ecuador registers with the tax authority SRI and operates under a RUC, which is also normally required to open a bank account. The main taxes are the value added tax known as IVA, with a general rate of 15 percent, a reduced 5 percent rate on some items, and zero rating on basics such as exports and certain food and medicine; corporate income tax at a general rate of 25 percent, rising to 28 percent where tax haven ownership is involved; and the currency outflow tax on money sent abroad, at a general rate of 5 percent in 2026 with reduced rates for some sectors. Micro businesses can fall under a reduced regime. Rates and rules change, so confirm the current position with the SRI or a tax adviser.

The tax framework for a business in Ecuador

Ecuador runs its taxes through the Servicio de Rentas Internas, the SRI, and every business operates under a RUC. As of 22 April 2026, the RUC is also normally required before a bank will open a business account, so tax registration and banking are closely linked. Accounts and accounting are in US dollars because the country is dollarized. The notes below are general information, not tax advice, and rates change, so confirm the current position with the SRI or a qualified adviser.

VAT, known as IVA

The value added tax in Ecuador is called the IVA. As of 22 April 2026, the general rate is 15 percent, after an increase from 12 percent in 2024, with a reduced 5 percent rate on certain goods and services and zero rating on basics such as exports and some food, medicine, and education. Most businesses charge IVA on sales and file returns with the SRI. Confirm which rate applies to your activity.

Corporate income tax

Companies pay corporate income tax on their profits. As of 22 April 2026, the general rate is 25 percent, rising to 28 percent in cases involving ownership through tax haven jurisdictions, while micro businesses can fall under a reduced regime taxed on net income. Filing and any advance payments are handled through the SRI. Confirm your rate and obligations with the SRI or a tax adviser.

Currency outflow tax

Ecuador applies a currency outflow tax, known locally as the ISD, on money transferred abroad. As of 22 April 2026, the general rate is 5 percent for 2026, with reduced rates introduced for some productive sectors and exemptions up to set thresholds. This matters for a business that pays foreign suppliers or moves funds out of the country, so factor it into cross border payments and confirm the current rate and exemptions with the SRI.

Compliance points to confirm

Three points to confirm, as of 22 April 2026. Verify with the SRI or a tax adviser

Which IVA rate applies to your goods or services, and your filing frequency.
Your corporate income tax rate and any advance payment obligation.
Whether the currency outflow tax applies to your foreign payments, and any exemption you can use.

We do not list a business account that is confirmed available to business customers in Ecuador through an affiliate as of 22 April 2026. Ecuadorian banks such as Banco Pichincha, Banco Guayaquil, and Produbanco serve business customers locally, and a registered company with a RUC from the SRI is normally required to open one. Some cross border providers offer US dollar accounts to non residents, with their own opening and transfer fees and limits on moving funds into Ecuador. Compare the local options directly, see the related guides below, and verify any option with the provider before applying.

Questions about tax and compliance in Ecuador

Who collects business tax in Ecuador?

The Servicio de Rentas Internas, the SRI, administers taxes in Ecuador, and every business operates under a RUC. As of 22 April 2026, the RUC is also normally required to open a business bank account. Confirm your obligations with the SRI or a tax adviser.

What is the VAT rate in Ecuador?

The value added tax, known as IVA, has a general rate of 15 percent as of 22 April 2026, after an increase from 12 percent in 2024, with a reduced 5 percent rate on some items and zero rating on basics such as exports and certain food and medicine. Confirm which rate applies with the SRI.

What is the corporate income tax rate?

The general corporate income tax rate is 25 percent, rising to 28 percent where ownership through tax haven jurisdictions is involved, while micro businesses can fall under a reduced regime. As of 22 April 2026, confirm your rate with the SRI or a tax adviser.

Is there a tax on sending money abroad?

Yes. Ecuador applies a currency outflow tax, the ISD, at a general rate of 5 percent in 2026, with reduced rates for some sectors and exemptions up to set thresholds. As of 22 April 2026, confirm the current rate and any exemption with the SRI.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 22 April 2026. Confirm current terms with the provider before applying.