Ecuador Approves VAT Increase and Special Contributions to Fund Earthquake Reconstruction
On 12 May 2016, Ecuador's National Assembly approved legislation to adopt tax measures proposed by President Rafael Correa to fund reconstruction following the devastating earthquake in the country on 16 April 2016. The measures include:
- A one-year increase in the value added tax rate from 12% to 14%;
- A company profit based contribution equal to 3% of taxable income in 2015;
- An equity based co…