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 2025

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 president described it as ‘one of the most important cases in the history of our country’; in other news, Portugal established a VAT group regime
Clients are facing increased TP audit scrutiny in Hungary. DLA Piper Hungary is therefore using AI and advanced analytics to augment its advice, the firm’s head of TP says
Simpson Thacher & Bartlett and MinterEllisonRuddWatts were among the firms that advised on the deal
AI will mean fewer entry-level roles in tax but also the emergence of new jobs, according to tax expert Isabella Barreto
As World Tax unveils its much-anticipated rankings for 2026, we focus on standout performances by PwC, KPMG and Deloitte across the Asia-Pacific region
The partnership model was looking antiquated even before the UK chancellor’s expected tax raid on LLPs was revealed. An additional tax burden may finally kill it off
The US’s GILTI regime will not be forced upon American multinationals in foreign jurisdictions, Bloomberg has reported; in other news, Ropes & Gray hired two tax partners from Linklaters
APAs should provide a pragmatic means to agree to an arm's-length outcome for an Australian entity and for the ATO, the tax authority said
Overall revenues and average profit per partner also increased in the UK, the ‘big four’ firm revealed
Increasingly complex reporting requirements contributed towards the firm’s growth in tax, it said
Gift this article