The tax reform repeals the exemption for interest income from Government debt instruments.
Ecuador’s new tax reform, enacted on 29 November 2021, repeals the exemption for interest income from Ecuadorian Government debt instruments. Under the provision, the interest income will be subject to 25% withholding tax rate (35% if the income is remitted to a tax haven jurisdiction). The change is effective upon enactment. For more on the tax reform, see EY Global Tax Alert, Ecuador enacts tax reform, da…