Ecuador hikes taxes in response to earthquake

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Ecuador hikes taxes in response to earthquake

Ecuador will increase VAT and implement a new profits surtax as temporary relief measures in response to the devastating earthquakes that hit the country this week.

President Rafael Correa announced that VAT will rise two percentage points from 12% to 14%, while a “one-off 3% additional contribution on profits” will also be levied.

The estimated $2 billion-plus in damage done by the 7.8 magnitude earthquake that struck on Saturday April 16, followed by a second earthquake on Wednesday April 20, adds to the country’s financial woes; the Ecuadorean economy had already been suffering from a reduction in oil revenues off the back of price volatility. But with 600 lives lost, thousands injured and much rebuilding to be done, it was clear that Correa needed to make temporary fiscal policy changes.

more across site & shared bottom lb ros

More from across our site

The country has overseen better audit procedures and demonstrated commitment to acting as a 'regional leader' on international tax matters, the OECD said
Barrister Setu Kamal and policy guru Dan Neidle have clashed over the former’s legal action against Google, described as ‘bonkers’ by Neidle
Authors from Khaitan & Co evaluate the recent CBDT notification, whereby legacy investments made by investors continue to be exempt from the applicability of GAAR
Dual-qualified corporate tax specialist Christoph Schimmer joins the firm after stints at Deloitte, Cerha Hempel and DLA Piper
Geopolitical rivalry is reshaping global tax cooperation, as the OECD’s minimum tax framework fragments and the EU grapples with the ensuing legal fallout
LED Taxand’s partner tells ITR about entrepreneurial inspirations, the importance of people skills, and what makes tax cool
Shiny new offices like Ryan’s in London Bridge aren’t just a cost – they signal that a firm is willing to align with its clients’ interests
Darren Graves will succeed Richard Houston, who is set to lead Deloitte EMEA; in other news, Morgan Lewis hired a three-partner tax team in New York
India also signed its first-ever bilateral APAs with France, Ireland, Indonesia and Sweden last year, the CBDT revealed
Chile’s revamped GAAR marks a shift toward structural scrutiny, pushing MNEs to strengthen tax governance, economic substance and compliance strategies
Gift this article