• 1. Freight tax

Freight tax

Withholding tax: 22% to 28% of taxable income, which is considered to be 2% of the gross freight earnings derived from international transport activities of non-residential shipowners and/or operators, provided that the freight is payable in Ecuador (=22%*2% = 0.44% of gross freight).

Exemption agreements

Residents of the following countries may benefit from double taxation agreements, which reduce or waive the withholding tax.

Country   Reduction Date of entry into force Date of effect
Belarus 100%   16/08/2017  01/01/2018
Belgium 1, 2  100%   01/01/2005
Bolivia 3 100%   01/01/2005
Brazil 1, 2   100%   01/01/1988
Canada   100% 20/12/2001 01/01/2002
Chile   100% 24/10/2003 01/01/2004
China 4  100% 06/03/2014 01/01/2015
Colombia 3 100%   01/01/2005
France 1, 2   100%   25/09/1992
Germany 1   100%   30/12/1987
Italy 1, 2   100%   31/01/1990
Korea, Republic of 100% 16/10/2013 01/01/2014
Mexico 1, 2   100%   13/12/2000
Peru 3 100%   01/01/2005
Romania 1, 2   100%   01/01/1997
 Russia 100% 14/11/2016 16/11/2018
Singapore
100% 18/12/2015 01/01/2016
Spain 1, 2   100%   09/07/1993
Switzerland 1, 2   100%   22/12/1995
Uruguay 100% 15/11/2012 01/01/2013
Limited transportation treaties (Air and/or Sea)
Argentina 0%   01/01/1983
Comprehensive treaty negotiations currently in progress
Ratified      
Qatar 100% 
 
In the process of negotiation or finalised but not signed
Saudi Arabia      
United Arab Emirates      

Notes:

  1. The treaty is based on the country where the effective management of the shipping enterprise is situated.
  2. The treaty states that if the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
  3. Exemption based on Andean Pact agreement.
  4. This treaty does not apply to residents of Hong Kong, SAR, Macau, SAR or Taiwan, Province of China.

 

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