Regulation NAC-DGERCGC20-00000011 issued by the Internal Revenue
Service establishes the withholding percentages applicable to the
dividends distributed by entities with tax residence or permanent
establishments located in Ecuador to: (i) individuals with tax
residence in Ecuador; or, (ii) foreign entities which beneficial
owners are individuals with tax residence in Ecuador.
The withholding percentage will apply over 40% of the amount of
the dividend, according to the following:
| Taxable income from (basic
tax bracket) |
Taxable income until
(surplus tax bracket)
|
Withholding over the basic
tax bracket |
Withholding percentage over
the surplus tax bracket
|
| – |
