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5.5. Source Rules with Respect to Income Derived by Non-Residents

Dividends

Dividends received from companies that are incorporated and registered in Ecuador and from foreign companies authorized to operate in Ecuador are deemed Ecuadorian  sourced.

Interest

Interest paid by Ecuadorian  residents to non-residents is deemed Ecuadorian  sourced.

Royalties

Royalty fees paid for the use of intellectual property in Ecuador, is deemed Ecuadorian sourced.

Rental income

Rental income from property situated in Ecuador  is deemed Ecuadorian  sourced.

Service fees

Service fees paid to a non-resident are deemed Ecuadorian  sourced if any of the following conditions are met:

  • The services are rendered within Ecuador
  • The services are  rendered outside  Ecuador  for Ecuadorian  residents by non residents or for earning income effectively subject to Ecuadorian  tax