Auxadi Ecuador
Ecuador offers one of the most competitive income tax rates in Latin America and maintains an investment-friendly climate, reinforced by incentives such as employment-linked tax deductions and sector-specific exemptions for renewable energy and tourism investments. The Constitution ensures equal treatment and clear rights for both domestic and foreign investors, supporting freedom in production and marketing, while the adoption of the U.S. dollar since 2000 provides monetary stability.
Strategically located on the Pacific coast, Ecuador has developed a robust port infrastructure, featuring seven state ports and ten private docks, including major hubs like Guayaquil and Posorja, which are undergoing significant expansions to enhance trade capacity and efficiency. Recent reforms have further opened opportunities in mining, oil and gas, agribusiness, and public-private infrastructure projects, supported by new regimes for public-private partnerships and free trade zones with attractive tax benefits.
While the tax, legal, and regulatory frameworks are complex and subject to frequent updates, mechanisms such as the Investment Contract offer legal certainty and access to arbitration, helping mitigate risks for entrepreneurs and multinationals seeking to establish or expand operations in Ecuador
Ecuador
Ecuador offers one of the most competitive income tax rates in Latin America and maintains an investment-friendly climate, reinforced by incentives such as employment-linked tax deductions and sector-specific exemptions for renewable energy and tourism investments. The Constitution ensures equal treatment and clear rights for both domestic and foreign investors, supporting freedom in production and marketing, while the adoption of the U.S. dollar since 2000 provides monetary stability.
Strategically located on the Pacific coast, Ecuador has developed a robust port infrastructure, featuring seven state ports and ten private docks, including major hubs like Guayaquil and Posorja, which are undergoing significant expansions to enhance trade capacity and efficiency. Recent reforms have further opened opportunities in mining, oil and gas, agribusiness, and public-private infrastructure projects, supported by new regimes for public-private partnerships and free trade zones with attractive tax benefits.
While the tax, legal, and regulatory frameworks are complex and subject to frequent updates, mechanisms such as the Investment Contract offer legal certainty and access to arbitration, helping mitigate risks for entrepreneurs and multinationals seeking to establish or expand operations in Ecuador
Why Auxadi is trusted as an expert outsourcing provider in Ecuador
Auxadi is your ideal partner in Ecuador, offering a complete and complementary range of outsourced services, all aligned to help make your life easier.
Incorporating in Ecuador can take up to 50 days, and entities established by foreign investors must appoint a local legal representative. This representative is responsible for carrying out all legal proceedings, tax acts, and any other necessary legal procedures. There are specific rules for powers given to foreign employees.
Through a single-point-of-contact delivery model and our leading MySPV technology platform, we offer an unrivalled solution that can help you grow your business.
International Accounting, Tax, Payroll, Transfer Pricing and Corporate Legal Services in 50 countries
Services
At Auxadi, we are proud to offer a comprehensive range of professional services, such as accounting, tax, payroll, transfer pricing and Corporate Legal Services to over 1,300 clients. In addition to these core services, we also provide a range of key services for multinationals and funds. Our MySPV platform and local experts enable us to provide comprehensive financial management services, acting as an extension of your finance department.
Our services
Tax Specialists
The Ecuadorian tax regime requires monthly and annual tax declarations at both federal and municipal levels. Though there are only eight tax payments due each year, processing and administration can take around 650 hours per annum.
Ecuador’s corporation tax varies based on the company’s corporate structure, but ranges from 22-28%. VAT is fixed at 12%.
While Ecuador is not a member of the OECD, it applies OECD transfer pricing guidelines and parameters. A 5% tax rate is applied to all transactions abroad, withheld by financial institutions during the payment process.
We’re experts in international taxation and our tax team in Ecuador can take care of intricate local taxation rules, using our purpose built automation technology, so you and your operations remain tax compliant.
- Tax compliance – covering multinational, federal, state, and municipal taxes
- Official Books and Annual Accounts
- Assistance with tax inspections and audits
- Tax reviews and claims
Accounting Specialists
Though Ecuador uses the U.S. dollar and IFRS accounting standards, all companies operating in the country must have an authorised public accountant. This authorised accountant will also sign all accounts in tandem with the appointed local legal representative.
All companies with over $500,000 in assets are required to undertake an external audit.
We help global corporations and fund managers with all their corporate accounting requirements. Using our bespoke and best-in-class technology platform, MySPV, you can have full and real time access and control of your accounting data, across multiple countries and multiple currencies.
Our accounting experts in Ecuador can help manage:
- Accounting and bookkeeping
- Management accounting
- Statutory accounting
- Official Books and Annual Accounts
- Cash management (including payments)
- Reporting
- Consolidation of finanical statements
- Bank account tracking
- Treasury and cash flow forecasts
- Audit assistance
Payroll Specialists
Ecuador ́s Labour Practices and Policies is what’s referred to for regulations regarding relations in the country. The code outlines local social security system (Instituto Ecuatoriano de Seguridad Social-IESS) obligations, regulations regarding the private pension system, social benefits, guidelines for various holiday bonuses due to employees, minimum wage compensation
Both employees and employers contribute to Social Security each month in Ecuador, with the employees paying 9.45% and an employer’s contribution of 12.15%. An additional amount of 8.33% is required after the second year of employment, intended to serve as an allowance in case of dismissal.
Our experienced and knowledgeable team of payroll specialists in Ecuador can help you with seamless management of your corporate payroll function.
Monitor and manage your international subsidiaries with our MultiCountry online platform
Access our online platform that provides you with a global and harmonized view of the accounting of your international subsidiaries, with drill down functionality to check support documentation, such as: invoices, outstanding creditors, approve payment orders, manage the payroll processing cycle and so much more. Request a demo to see how our technology can help you.
Get access to Auxadi corporate materials and technical guides to know more about us.
Auxadi in Ecuador
Av. de los Shyris 36-84 y Suecia
Edificio Iqon, Oficinas IMPAQTO, Of. 340, Piso 1 – Quito
Tel: +593 2 401 6141
Count on our professional and extensive experience in the Ecuadorian market, for your investments in Ecuador and elsewhere in Europe, the United States and Latin America.