Ecuador – Taxation of international executives
Taxation of international executives
Taxation of international executives
Overview and Introduction
Individuals are classified either as resident or non-resident tax payers. Residents are taxed on worldwide income. Non-residents are taxed on Ecuadorian-source income only.
Ecuadorian-source income includes income received by Ecuadorians and foreign nationals in respect of work, professional, commercial, industrial, agricultural, mining services, and others of an economic nature carried out in Ecuadorian territory.
Income tax is calculated by applying a progressive tax rate schedule, from 5 percent to a maximum of 35 percent of taxable income. In 2021 income greater than USD11,212 are subject to tax payment.
Non-residents performing temporary services are taxed at a flat rate of 25 percent regardless of where paid. Non-residents performing permanent services are taxed at the progressive tax rates of a resident that is, taxed in the same way as services rendered by an individual residing in the country.
Beginning in 2020, the deduction of expenses over the taxable basis of the income tax is permitted for individuals; provided that the net income of such persons does not exceed USD 100,000; this deduction corresponds to a maximum of 1.3 over the base in effect or maximum 50 percent of taxable income, whichever is first.
The official currency of Ecuador is the U.S. Dollar (USD).
Herein, the host country refers to the country where the expatriate is going on assignment. The home country refers to the country where the expatriate lives when he/she is not on assignment.
Income Tax
Tax returns and compliance
When are tax returns due? That is, what is the tax return due date?
Tax return filing is due between 10 and 28 March following the end of the tax year. The exact date depends on the ninth digit of the individual taxpayer’s identification number or individual’s ID. Where Ecuadorian activities have been terminated, an income tax return should be filed prior to departure. Extensions to the filing date are not allowed.
What is the tax year-end?
31 December.
What are the compliance requirements for tax returns in Ecuador?
Residents
Husbands and wives must file tax returns separately in respect of employment income, business income, and income received from assets, which are owned individually. Income from jointly owned property and all other joint income are divided with each spouse reporting half.
Non-residents
According to the Internal Tax Regime Law, individuals in any of the following conditions are considered as resident:
- When their permanency in the country, including sporadic absences, is one-hundred eighty-three (183) calendar days or more, consecutive or not, in the same fiscal period;
- When their permanency in the country, including sporadic absences, is one-hundred eighty-three (183) calendar days or more, consecutive or not, in a period of twelve months within two fiscal periods, unless their tax residency is verified for the corresponding period in other country or jurisdiction.
- The core of their activities or economic interests is in Ecuador, in a direct or indirect manner.
- Their permanency in another country or jurisdiction is not higher than one-hundred eighty- three (183) calendar days, consecutive or not, in the fiscal period and their closets family ties are in Ecuador.
Non-resident individuals will be subject to a withholding at the source of income tax at a rate of 25 percent over the income amount.
Residents and temporary residents
Income tax table for 2021
Taxable income bracket |
Total tax on income below bracket |
Tax rate on income in bracket |
|
From USD |
To USD |
USD |
Percent |
0 |
11,212 |
0 |
0 |
11,212 |
14,285 |
0 |
5 |
14,285 |
17,854 |
154 |
10 |
17,854 |
21,442 |
511 |
12 |
21,442 |
42,874 |
941 |
15 |
42,874 |
64,297 |
4,156 |
20 |
64,297 |
85,729 |
8,440 |
25 |
85,729 |
114,288 |
13,798 |
30 |
114,288 |
Over |
22,366 |
35 |
Non-residents
The current income tax rate for non-residents is 25 percent.
Residence rules
For the purposes of taxation, how is an individual defined as a resident of Ecuador?
According to the Internal Tax Regime Law, individuals in any of the following conditions are considered as resident:
- When their permanency in the country, including sporadic absences, is one-hundred eighty-three (183) calendar days or more, consecutive or not, in the same fiscal period;
- When their permanency in the country, including sporadic absences, is one-hundred eighty-three (183) calendar days or more, consecutive or not, in a period of twelve months within two fiscal periods, unless their tax residency is verified for the corresponding period in other country or jurisdiction.
- The core of their activities or economic interests is in Ecuador, in a direct or indirect manner.
- Their permanency in another country or jurisdiction is not higher than one-hundred eighty- three (183) calendar days, consecutive or not, in the fiscal period and their closets family ties are in Ecuador.
Is there, a deminimus number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host country for more than 10 days after their assignment is over and they repatriate.
See comments in previous paragraphs (rules of residence).
What if the assignee enters the country before their assignment begins?
See comments in previous paragraphs (rules of residence) .
Termination of residence
Are there any tax compliance requirements when leaving Ecuador?
Before leaving the country, the corresponding income tax (Form 102) should be settled; and
in case of having obtained a RUC (Taxpayer Identification Number) to issue invoices, the corresponding VAT returns should be presented until the last month of stay and the RUC should be cancelled.
What if the assignee comes back for a trip after residency has terminated?
It will depend on the reasons for coming back. If returning for tourism, there would not be any requirement. If returning for professional reasons, the requirements previously indicated for occasional or permanent services will apply.
Communication between immigration and taxation authorities
Do the immigration authorities in Ecuador provide information to the local taxation authorities regarding when a person enters or leaves Ecuador?
Not presently; however, tax authorities indeed provide information to the migration authorities regarding those individuals having taxes pending of payment; the consequence of that information is that said individuals are not allowed to leave the country until all their taxes pending of payment have been paid.
Filing requirements
Will an assignee have a filing requirement in the host country after they leave the country and repatriate?
No, migratory authorities do not require any filing on tax compliance.
Economic employer approach
Do the taxation authorities in Ecuador adopt the economic employer approach1 to interpreting Article 15 of the OECD treaty? If no, are the taxation authorities in Ecuador considering the adoption of this interpretation of economic employer in the future?
If an employee is assigned to Ecuador and gets paid by his/her employer abroad, the host country employer will not be considered an economic employer. It is the liability of the employee to comply with the tax filling and payment.
De minimus number of days
Are there a deminimus number of days2 before the local taxation authorities will apply the economic employer approach? If yes, what is the deminimus number of days?
No.
Types of taxable compensation
What categories are subject to income tax in general situations?
- salary and bonuses
- employer contributions to home country pension schemes
- medical insurance premiums paid by an employer
- home leave
- cost-of-living allowances
- housing allowances and employers’ contributions to rent and for payment of utilities
- tuition.
Intra-group statutory directors
Will a non-resident of Ecuador who, as part of their employment within a group company, is also appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in Ecuador) trigger a personal tax liability in Ecuador, even though no separate director's fee/remuneration is paid for their duties as a board member?
No, the appointment of an employee as a member of the Board of Directors does not generate an obligation to pay taxes. However, the limits of participation in terms of management, administration, control or capital of the company must be taken into account for related party purposes.
a) Will the taxation be triggered irrespective of whether or not the board member is physically present at the board meetings in Ecuador?
Yes, as long as you receive some type of income from the Ecuadorian office.
b) Will the answer be different if the cost directly or indirectly is charged to/allocated to the company situated in Ecuador (i.e. as a general management fee where the duties rendered as a board member is included)?
If any payment is made and charged to the Ecuadorian company for its services, it will be considered as taxable income for the member of the Board of Directors.
c) In the case that a tax liability is triggered, how will the taxable income be determined?
In case of having to pay taxes, a 25% tax should be calculated on the amounts invoiced by the Ecuadorian company for the amounts paid to the new member of the Board of Directors.
Tax-exempt income
Are there any areas of income that are exempt from taxation in Ecuador? If so, please provide a general definition of these areas.
- Interests
- Prizes
- thirteenth and fourteenth remunerations
- scholarships
- Bonuses
- Occasional disposal of property
- reimbursements of relocation expenses
- travel and per diems (provided that they are business related) stock options
Interests
Received by individuals for their demand deposit savings paid by entities in the financial system of the country.
Prizes
From lottery or raffle prizes sponsored by the Junta de Beneficencia de Guayaquil and Fe y Alegría.
Thirteenth and fourteenth remunerations
These are additional remunerations paid at law to employees under dependence relationship.
Scholarships
Allocations of scholarships for study financing of specialization or training in Institutions of Higher Education and local or foreign government institutions.
Bonuses Bonificaciones
For severance indemnity, not exceeding what is determined by the Labor Code.
Occasional disposal of property
It is considered as occasional that which is not in the ordinary course of business or regular activities of the taxpayer.
Reimbursements of relocation expenses
The expense refunds are not subject to income tax withholdings, when their supporting sales receipts are issued under the name of an intermediary; i.e., in favor of the person to whom those refunds are made and fulfill the requirements established in the Ruling for Sales Receipts and Withholding.
In case the refund intermediary is an employee under the reimburser’s dependence relationship, this may issue a settlement of goods acquisition and rendering of services instead of the refund invoice.
Travel and per diems
The amounts received by officers, employees and workers from the employers in the private sector in order to cover travel expenses, lodging and food, for travels to be performed for reasons inherent to their function or role, inside or outside the country related to the company’s economic activity which assumes the expense are not subject to income tax.
Stock options
Stock options are not subject to tax in Ecuador; however, contributions by a company to the stock option plan may have tax consequences where the local operation takes a deduction for the contribution as an operational expense.
Salary earned from working abroad
Is salary earned from working abroad taxed in Ecuador? If so, how?
All individuals residents in Ecuador receiving foreign income, which have been taxed in other State, are excluded from the taxable base in Ecuador and therefore will not be subject to taxation. In case of income from tax havens the exemption will not be applied and income will be part of the taxpayer’s global income.
Taxation of investment income and capital gains
Are investment income and capital gains taxed in Ecuador? If so, how?
Capital gains are generally taxed as ordinary income.
Royalties are treated as ordinary income. A 25 percent tax is withheld from payments of royalties abroad. This withholding tax rate also applies to payments for services and technical assistance payments remitted abroad. Royalties and other payments paid to residents of countries that have entered into double taxation treaties with Ecuador could have a lesser withholding percentage.
Dividends, interest, and rental income
No tax is levied on dividends paid by Ecuadorian companies to non-resident individuals and resident and non-resident entities, except for those domiciled in tax heavens, if the company has paid tax on underlying profits.
Interest on savings deposits paid to individuals by Ecuadorian financial entities is tax-exempt, likewise, time deposits and yields obtained from investments in fixed term securities, in both cases the term should be one year or more. Other interest income forms part of taxable income.
Gains from stock option exercises
Residency status |
Taxable at: |
||
|
Grant |
Vest |
Exercise |
Resident |
N |
Y |
N |
Non-resident |
N |
Y |
N |
Other (if applicable) |
N |
Y |
N |
Foreign exchange gains and losses
There is no special regulation for gains/losses. However, working income under dependence relationship could not be affected with losses, whichever is their origin.
Principal residence gains and losses
There is no special regulation for gains/losses. However, working income under dependence relationship could not be affected with losses, whichever is their origin.
Capital losses
Capital losses are not deductible.
Personal use items
Losses or destruction of jewelry, art collections, and other personal use items are not deductible.
Gifts
Donations are not deductible form income tax.
Additional capital gains tax (CGT) issues and exceptions
Are there additional capital gains tax (CGT) issues in Ecuador? If so, please discuss?
There is a municipal tax on royalty which consists of applying 10 percent over earnings resulting from the sale of urban properties. Certain deductions are applicable (cost of acquisition, improvements, 5 percent over earnings in each year elapsed from the acquisition of the property).
Are there capital gains tax exceptions in Ecuador? If so, please discuss?
Capital gains are generally taxed as ordinary income. Occasional gains from the disposal of property are considered as exempt.
Pre-CGT assets
No.
Deemed disposal and acquisition
No.
General deductions from income
What are the general deductions from income allowed in Ecuador?
- housing expenses: rental of property used for housing, interest on mortgage loans, and property
- taxes of the principal residence
- tuition expenses: those paid including those incurred by dependents older than 18 years economically dependent of the taxpayer
- health expenses: services in clinics, hospitals, medical fees, medicines, and insurances
- food expenses: purchase of foods for human consumption and consumption in restaurants
- clothing expenses: incurred in any type of clothing (not including accessories).
Tax reimbursement methods
Calculation of estimates/prepayments/withholding
Pay-as-you-go (PAYG) withholding
Employers will make the withholding on a monthly basis, for that purpose, they should add all remunerations except the thirteenth and fourteenth remunerations and will deduct amounts on individual contribution to the social security (when it is assumed by the employee), as well as, personal expenses.
PAYG installments
On the taxable basis obtained, the income tax rate for individuals will be applicable; the result will be divided into 12 to determine the monthly installment to be withheld.
When are estimates/prepayments/withholding of tax due in Ecuador? For example: monthly, annually, both, and so on.
Monthly and reliquidation at the end of year.
Relief for foreign taxes
Is there any Relief for Foreign Taxes in Ecuador? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on?
Ecuador has double taxation treaties with: Canada, Uruguay, Mexico, Chile, Brazil, Switzerland, Romania, Italy, France, Spain, Germany, Belgium, Korea and China, and is a member of the Andean Community of Nations (CAN). Also members are Bolivia, Colombia, and Peru.
General tax credits
Sample tax calculation
This calculation3 assumes a married taxpayer resident in Ecuador with two children whose three-year assignment begins 1 January 2019 and ends 31 December 2021. The taxpayer’s base salary is USD100,000 and the calculation covers three years.
|
|
|
|
|
2019 USD |
2020 USD |
2021 USD |
Salary |
100,000 |
100,000 |
100,000 |
Bonus |
20,000 |
20,000 |
20,000 |
Cost-of-living allowance |
10,000 |
10,000 |
10,000 |
Housing allowance |
12,000 |
12,000 |
12,000 |
Company car |
6,000 |
6,000 |
6,000 |
Moving expense reimbursement |
20,000 |
0 |
20,000 |
Home leave |
0 |
5,000 |
0 |
Education allowance |
3,000 |
3,000 |
3,000 |
Interest income from non-local sources |
6,000 |
6,000 |
6,000 |
Other assumptions
- All earned income is attributable to local sources.
- Bonuses are paid at the end of each tax year, and accrue evenly throughout the year.
- Interest income is not remitted to Ecuador.
- The company car is used for business and private purposes and originally cost USD50,000.
- The employee is deemed resident throughout the assignment.
- Tax treaties and totalization agreements are ignored for the purpose of this calculation.
Calculation of taxable income
Year ended |
2019 USD |
2020 USD |
2021 USD |
Days in Ecuador during year |
365 |
365 |
365 |
Earned income subject to income tax |
|
|
|
Salary |
150,000 |
150,000 |
50,000 |
Bonus |
10,000 |
10,000 |
10,000 |
Cost-of-living allowance |
5,000 |
5,000 |
5,000 |
Net housing allowance |
6,000 |
6,000 |
6,000 |
Company car |
0 |
0 |
0 |
Moving expense reimbursement |
0 |
0 |
0 |
Home leave |
0 |
5,000 |
0 |
Education allowance |
3,000 |
3,000 |
3,000 |
Total earned income |
174,000 |
179,000 |
74,000 |
Other income |
0 |
0 |
0 |
Total income |
174,000 |
179,000 |
74,000 |
Deductions to the Ecuadorian Social Security |
16,443 |
16,915.50 |
6,993 |
Deductions for personal expenses |
14,703 |
-------------- |
14,575.60 |
142,854 |
162,084.50 |
52,431.40 |
Calculation of tax liability
|
2019 USD |
2020 USD |
2021 USD * |
Taxable income as above |
142,854 |
162,084.50 |
52,431.40 |
Ecuador tax thereon |
|
|
|
Less: |
0 |
0 |
0 |
Domestic tax rebates (dependent spouse rebate) |
0 |
0 |
0 |
Foreign tax credits |
0 |
0 |
0 |
Total Ecuador tax |
9,647.40 |
16,361.28 |
1,911.68 |
FOOTNOTES:
1 Certain tax authorities adopt an "economic employer" approach to interpreting Article 15 of the OECD model treaty which deals with the Dependent Services Article. In summary, this means that if an employee is assigned to work for an entity in the host country for a period of less than 183 days in the fiscal year (or, a calendar year of a 12-month period), the employee remains employed by the home country employer but the employee's salary and costs are recharged to the host entity, then the host country tax authority will treat the host entity as being the "economic employer" and therefore the employer for the purposes of interpreting Article 15. In this case, Article 15 relief would be denied and the employee would be subject to tax in the host country.
2 For example, an employee can be physically present in the country for up to 60 days before the tax authorities will apply the economic employer approach.
3 Sample calculation generated by KPMG del Ecuador Cía. Ltda., the Ecuador member firm of KPMG International, based on Art. 36 of Ley de Regimen Tributario Interno.
Special considerations for short-term assignments
For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.
Residency Rules
Payroll considerations
Taxable income
Other taxes and levies
Social security tax
Are there social security/social insurance taxes in Ecuador? If so, what are the rates for employers and employees?
Employer and employee
Type of insurance |
Paid by employer |
Paid by employee |
Total |
Social Security |
11.15% |
9.45% |
20.60% |
IECE |
0.50% |
0.00% |
0.50% |
SECAP |
0.50% |
0.00% |
0.50% |
Total |
12.15% |
9.45% |
21.60% |
Gift, wealth, estate, and/or inheritance tax
Are there any gift, wealth, estate, and/or inheritance taxes in Ecuador?
There is a tax levied on income resulting from a donation, inheritance, or gift; and its liquidation is similar to that make for income tax or individuals; there are also deductions applicable on this taxable basis such as expenses incurred in last illness, funeral services, succession opening, and executor rights among others.
Real estate tax
Other taxes
Foreign Financial Assets
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/territory’s fiscal or banking authorities?
Yes, there is an obligation to report assets in Ecuador and abroad, as well as liabilities in Ecuador and abroad. This is done through an obligation called "patrimonial declaration", which does not generate tax to be paid, but has informative purposes.
Additionally, in September 2021, the Global Forum on Fiscal Transparency reported that Ecuador complies with international standards of security and confidentiality implemented for the automatic exchange of information of financial accounts in other countries, of taxpayers residing in Ecuador.
Immigration
Following is an overview of the concept of Ecuador’s immigration system for skilled labor.
(e.g., which steps are required, authorities involved, in-country/territory and foreign consular processes, review/draft flow chart illustrating the process)
International Business Travel/Short-Term Assignments
Describe (a) which nationalities may enter Ecuador as non-visa national, (b) which activities they may perform and (c) the maximum length of stay.
Citizens of all countries except the following may enter without visas:
- Afghanistan
- Angola
- Bangladesh
- Cameroon
- Cuba
- Eritrea
- Ethiopia
- Gambia
- Ghana
- Guinea
- India
- Iraq
- Kenya
- Libyan Arab Jamahiriya
- Nepal
- Nigeria
- Pakistan
- Democratic Republic of the Congo
- Democratic People's Republic of Korea
- Senegal
- Syria
- Somalia
- Sri Lanka
- Venezuela (as of August 26, 2019)
Those entering without VISA must present:
- Valid and valid passport (valid for 6 months).
- South American citizens' ID card or DNI (National ID card)
As tourists they can stay in Ecuador for up to 90 days + 90 renewable days. If a person wishes to work in Ecuador, he/she must have a work VISA.
Describe (a) the regulatory framework for business travelers being visa nationals (especially the applicable visa type), (b) which activities they may perform under this visa type and the (c) maximum length of stay.
In Ecuador there are 2 VISA stays for work, which are detailed below:
a) Temporary residence work VISA: It has a term of 2 years and the requirements to obtain it are as follows:
b) Permanent work VISA: It is valid for more than 21 months.
Outline the process for obtaining the visa type(s) named above and describe (a) the required documents (including any legalization or translation requirements), (b) process steps, (c) processing time and (d) location of application.
a) Temporary residence work VISA: It has a term of 2 years and the requirements to obtain it are as follows:
- Updated photograph, with white background, facial expression must be neutral (preferably), or have a natural smile, with both eyes open.
- Valid and valid passport in original and copy.
- Valid regular stay in the country from which the visa is being applied for.
- Original criminal record certificate from the country of origin or in which he/she has resided during the last five years, translated, apostilled or legalized. One hundred eighty (180) days of validity will be taken into account, counted from the date of issuance of the certificate until the last entry of the interested party to the country. The certificates issued by Federal Governments, will be valid as long as they include the criminal record at national level. This document is only required for persons over 18 years of age.
- Proof of lawful means of subsistence for the applicant and his/her dependent family group, in accordance with the Protocol for Proving Lawful Means of Livelihood that Justify the Subsistence of the Applicant and his/her Dependent Family Group in Visa Processes. Ministerial Agreement 0000085", which can be downloaded from the website of the Ministry of Foreign Affairs.
- Payment of the fee (Consular and Diplomatic Tariff).
Note: For renewal of temporary residence visas, it is an indispensable requirement to present a certificate of affiliation to a public or private health insurance, with full coverage, valid for the duration of the migratory condition (two years), as provided in Art. 62, numeral 2 of the Regulations to the Organic Law of Human Mobility. In the case of permanent residences, there is no renewal, in this case the figure is visa transfer, for such purpose, a certificate of affiliation to a public or private health insurance, with full coverage, must also be attached.
Special Requirements:
- Personnel action or employment contract issued by corresponding public or private entity.
- Certificate of registration of the contract issued by the Ministry of Labor.
- Certificate of no outstanding obligations with the Internal Revenue Service, the Ecuadorian Institute of Social Security and the Superintendence of Companies, issued by the competent authority in each case.
b) Permanent work VISA: It is valid for more than 21 months.
- Application form for visas and transfers.
- Valid and valid passport in original and copy.
- Proof of lawful means of livelihood that allow the subsistence of the applicant in accordance with the Protocol for Proving Lawful Means of Livelihood that Justify the Subsistence of the Applicant and his/her Dependent Family Group in the Visa Process. Ministerial Agreement 0000085", which can be downloaded from the website of the Ministry of Foreign Affairs.
- Payment of the fixed fee (Consular and Diplomatic Tariff).
Minors
In case of minor applicants, the birth certificate of the minor must be attached, apostilled or legalized and translated if necessary.
Note: For renewal of temporary residence visas it is an indispensable requirement to present a certificate of affiliation to a public or private health insurance, with full coverage, valid for the duration of the migratory condition (two years), according to Art. 62, numeral 2 of the Regulation to the Organic Law of Human Mobility. In the case of permanent residences, there is no renewal, in this case the figure is visa transfer, for such purpose, a certificate of affiliation to a public or private health insurance, with full coverage, must also be attached.
Special Requirements:
- Ecuadorian criminal record certificate. This document is only required for persons over 18 years of age.
- Proof of temporary residence with which the time of permanence of at least 21 continuous months is accredited and the request for permanent residence must be presented prior to the expiration of the migratory condition held.
The process of obtaining these VISAS takes approximately 90 working days from the date of submission of the respective application.
The VISA can be requested at the Ecuadorian Ministry of Foreign Affairs, when the person is already in the country or the application can be submitted at the Ecuadorian Consulate in the country where the assignee comes from.
Are there any visa waiver programs or specific visa categories for technical support staff on short-term assignments?
There are no special VISAS.
Long-Term Assignments
What are the main work permit categories for long-term assignments to Ecuador? In this context please outline whether a local employment contract is required for the specific permit type.
Work visas, a local contract is required.
Provide a general process overview to obtain a work and residence permit for long- term assignments (including processing times and maximum validation of the permit).
In Ecuador, in order to apply for a permanent residency VISA, you must first have a temporary residency VISA, so for these requirements consider those indicated in the previous section.
Is there a minimum salary requirement to obtain a long term work and residence permit for assignments? Can allowances be taken into account for the salary?
No.
Is there a fast-track process which could expedite the visa/ work permit?
No.
At what stage is the employee permitted to start working when applying for a long term work and residence permit (assignees/ local hire)?
Yes
Can a short term permit/ business visa be transferred to a long term permit in Ecuador?
No.
Is it possible to renew work and residence permits?
Yes.
Is there a quota or system or a labor market test in place?
No.
General Immigration Related Questions
Would it be possible to bring family members to Ecuador?
Yes.
Is it possible to obtain a permanent residence permit?
Yes.
What if circumstances change after the Work and Residence application process?
It will depend on the type of circumstances.
How long can a permit holder leave Ecuador without their permit becoming invalid?
Temporary residency permits multiple entries and exits during the period of validity of the visa and will not be limited to stay outside of the country outside the country with the exception of the persons recognized as refugees in the present Law.
The permanent resident may be absent and return to the country, but may not remain abroad for more than one hundred and eighty days in each year remain abroad for more than one hundred and eighty days in each year counted from the date of obtaining the migratory date of obtaining the migratory condition, during the first two years. In case of noncompliance, the authority of migratory control will impose the sanction provided for in the immigration offenses of this Law and its Regulations.
Must immigration permissions be cancelled by the end of the assignment/employment?
Yes.
Are there any penalties for individuals and/or companies in place for non-compliance with immigration law?
Yes, the penalties are for the individual, not for the hiring company.
Other Important Items
Disclaimer
All information contained in this document is summarized by KPMG Servicios de Asesoría e Impuestos Cía. Ltda., the Ecuador member firm of KPMG International, based on “Ley de Regimen Tributario Interno” and its Ruling.