The Ministry of Production, Foreign Trade and Investments (MPCEI) and the Internal Revenue Service (SRI) have increased oversight measures to ensure that tax benefits granted through investment contracts are used properly. According to authorities, 77 control processes have been carried out, with 27 involving major taxpayers.
There are currently 520 major taxpayers in Ecuador. Of these, 101 have signed investment contracts that provided them with a total of $371 million in tax benefits between 2022 and 2024. In the same period, other taxpayers signed an additional 417 investment contracts, which resulted in $31.8 million in tax incentives.
Authorities reported that some irregularities were found during these control processes. As a result, SRI has revoked certain tax benefits due to contractual non-compliance and is taking steps to address practices that reduce fiscal revenue.
Both MPCEI and SRI stated their intention to expand audits to all taxpayers holding investment contracts. The goal is to confirm the legality and ongoing eligibility for received benefits.
Officials emphasized that throughout these control actions, taxpayer rights such as due process, legal security, and the right to present evidence are being upheld.
“These joint actions by both government entities aim to ensure that fiscal incentives are used fairly and according to their intended purpose, thereby promoting an equitable and sustainable environment for the country’s economic development,” said representatives from MPCEI and SRI.
“The National Government reaffirms its commitment to protect state resources and promote a tax culture based on transparency and responsible compliance,” they added.
