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4.1. Domestic PE of a Foreign Entity

A permanent establishment is defined as a fixed location from where a company carries out wholly or partially its activities in Ecuador. A permanent establishment is deemed to arise, in particular where a company maintains an office, management location or business address in order to:

  • Perform technical, financial or other consulting services relating to contracts concluded in Ecuador or elsewhere;
  • Render services usable by public performers such as stage, movie, television and radio artists, bullfighters, sportsmen, or by sellers of air or maritime carrier tickets or transportation to be used inside or outside Ecuador;
  • Conduct in Ecuador an economic activity whether by hiring personnel directly or indirectly to conduct economic activities in Ecuador;
  • Maintain a stock of own goods for sale in the country, unless the goods are kept in a bonded or customs warehouse or similar facility; or
  • Rent premises or pay for services and other expenditure related to the conduct of economic activities in Ecuador.