What are the Accounting & Taxation Requirements in Ecuador?
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.
Watch the presentation below to better understand your tax and auditing obligations in Ecuador created by our senior accountant in Ecuador. For more personalized information on what the accounting and tax requirements are for Ecuador, reach out to our local team and find out how we can support you and your business.
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