Ecuador’s liberal investment regulations and business-friendly environment make its accounting and financial industry one of the most developed in Latin America. Strong government agendas to boost foreign investment and business activity have nurtured an increasingly attractive business climate in the country.
Before beginning operations in the region, it is important to understand Ecuador’s accounting and auditing standards. You should be aware of all the local tax laws in order to keep your business compliant, and ensure its success in the region.
The Ecuadorian tax system is friendly for foreigners since they are only taxed on income earned within Ecuador. In Ecuador, International Financial Reporting Standards (IFRS) are applied and financial statements must be submitted annually to the Internal Revenue Services and the superintendence of companies. Ecuador has 19 tax treaties and the national tax authority responsible for taxation matters within Ecuador is the Internal Revenue Service’s (SRI). The tax authorities have three years from the date of filing to review tax returns and make changes if deemed necessary. If a tax return was filed incomplete or not at all, the period of review can be extended for up to 6 years.
For more information about our accounting and taxation services in Ecuador, please get in contact with our local team.
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