Ecuador hikes taxes in response to earthquake

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Ecuador hikes taxes in response to earthquake

Ecuador will increase VAT and implement a new profits surtax as temporary relief measures in response to the devastating earthquakes that hit the country this week.

President Rafael Correa announced that VAT will rise two percentage points from 12% to 14%, while a “one-off 3% additional contribution on profits” will also be levied.

The estimated $2 billion-plus in damage done by the 7.8 magnitude earthquake that struck on Saturday April 16, followed by a second earthquake on Wednesday April 20, adds to the country’s financial woes; the Ecuadorean economy had already been suffering from a reduction in oil revenues off the back of price volatility. But with 600 lives lost, thousands injured and much rebuilding to be done, it was clear that Correa needed to make temporary fiscal policy changes.

more across site & shared bottom lb ros

More from across our site

Recent news of job cuts at EY is symptomatic of how the PwC controversy has tarnished the reputation of the entire ‘big four’
Experts reportedly discussed extending the safe harbour to 2027 to give countries more time to legislate; in other news, Baker McKenzie and Greenberg Traurig made senior tax hires
Awards
Submit your nominations to this year's WIBL Americas Awards by January 23
Recent changes in UK tax rules and cross-border requirements are generating high demand for specialist advice, according to MHA
Hany Elnaggar examines how Gulf Cooperation Council countries are internalising transfer pricing norms within evolving fiscal systems shaped by both Islamic and international influences
Where a TP study of comparables produces an arm’s-length range, and the taxpayer’s filed position is outside that range, HMRC will adjust to the median by default
EY, KPMG, Deloitte, and PwC have all seen a decrease in public sector contracts since the scandal – it is understood
Consoli, a tax partner at Brazilian law firm Martinelli Advogados, tells ITR about the importance of staying at the coalface and constantly learning
Despite legislative gridlock, international investors should be wary of legal precedents set by recent court rulings, which could substantially alter the Spanish tax environment
The new outfit, Ashurst Perkins Coie, will bring together around 3,000 lawyers across 23 countries
Gift this article