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With more than twenty-three years of experience, Tobar ZVS has earned an incomparable reputation in areas such as: Tax and Labor Consultancy; Corporate M&A; Antitrus and Competition; Negotiation, Conflict Resolution and Disputes; Intellectual Property and Anti-Piracy; and, Natural Resources, Energy and Infrastructure.
The Firm was created in 1993 by Bernardo Tobar as Tobar & Tobar. In 1996 its name was changed to Tobar & Bustamante, and at the end of 2015 it took on the name Tobar ZVS, which acknowledges partners Cesar Zumarraga, Oscar Vela and Alvaro Sevilla, who along with the founding partner, have headed up the historic growth of the Firm.
On January 17th, 2023, the Superintendence of Companies, Securities, and Insurance issued a release on the presentation of the financial statements, the most relevant content of which is detailed below:
a) As of January 20th, 2023, the institutional website will be available to report the financial statements and upload the corporate documents of the 2022 fiscal year.
b) The due date for the submission of the information is April 30th, 2023.
c) No extensions will be granted for the submission of financial and corporate information.
d) Deadlines breaches may be sanctioned with fines of 1 up to 12 statutory minimum wage (currently, from US$450 to US$5.450).
For more information do not hesitate to contact our Corporative Practice Partner, Álvaro Sevilla (asevilla@tzvs.ec).
© TobarZVS
This publication contains information of general interest and may not constitute a legal opinion on specific matters. Any particular analysis, shall require legal advice from the Firm.
On January 10, 2023, the President of the Republic of Ecuador established through Executive Decrees Nos. 643, 644, 645 the tax rate reductions for year 2023, as follows:
1. VAT reduction on tourism services
Executive Decree No. 643 set a general VAT rate reduction from 12% to 8%, on tourism services activities for individuals or companies, national or foreign, during the following national holidays:
• Carnival Holiday
• Easter Holiday
• Cuenca Independence and All Souls Holidays
2. Progressive reduction of Foreign Currency Outflows Tax (ISD)
Executive Decree 644 provided a progressive reduction of ISD, according to the following schedule:
• As from February 1st, 2023, the rate of ISD is reduced from 4% to 3.75%.
• As from July 1 st, 2023, the rate of ISD is reduced from 3.75% to 3.50%.
• As from December 31 st, 2023, the rate of ISD is reduced from 3.50% to 2%.
The Internal Revenue Service, before the indicated dates, shall modify any relevant general resolution and update the corresponding forms to apply the tax reduction.
3. Modifications to the Special Consumption Tax (ICE)
Executive Decree 645 provided the modification of the ICE, in the following proportions:
Item | Previous Rate | New Rate |
Tobacco and tobacco consumables | 150% | 50% |
Firearms, sporting weapons and ammunition | 300% | 30% |
Airplanes and helicopters, except those destined for commercial transportation of passengers, cargo and services; jet skis, three-wheelers, four-wheelers, yachts and pleasure boats | 15% | 10% |
Alcohol (per liter of pure alcohol) | US$7.15 | US$10. |
Craft Beer (per liter of pure alcohol puro) | US$1.49 | US$1.50 |
Plastic bags (per liter of pure alcohol) | US$0.06 | US$0.08 |
The prices for (ii)cigarettes; (ii) soft drinks and carbonated beverages containing more than 25 grams of sugar per liter of beverage; and, (iii) industrial beverages, remain at US$0.16 (per unit), US$0.18 (per 100 grams of added sugar), and US$13.08 (per liter of pure alcohol), respectively.
For more information do not hesitate to contact our Tax Practice Partner, Iván García (igarcia@tzvs.ec).
© TobarZVS
This publication contains information of general interest and may not constitute a legal opinion on specific matters. Any particular analysis, shall require legal advice from the Firm.
On January 4th, 2023 the “Organic Law for Young Adults” (hereinafter the “Law”), was published in the Supplement to the Official Gazette 222.
Since March 2016 -by the Organic Law for Promoting Employment for Young Adults, the employment agreement for young adults was incorporated into the Labor Code and with it the obligation to hire young adults (art.34.1). The above-mentioned Law provided that the employment agreement for young adults may be concluded with individuals between 18 and 26 years old.
The Ministry of Labor by Ministerial Agreement MDT-2016-158 of August 2016, provided that employers with more than 50 employees are obliged to hire young adults in at least 10% of their annual payroll increase generated in each fiscal year. At the same time, it regulated that only those individuals who have not paid more than 6 months (continuous) of contributions to the Social Security under a full-time employment relationship shall be considered part of the young employees’ quota.
For more information on the obligation to hire young adults, please do not hesitate to contact our Director of Labor Practice, Marta Villagómez (mvillagomez@tzvs.ec).