Ecuador Cuts Exit Tax to Boost Competitiveness: 0% ISD for Raw Material Imports in Early 2025
The EcuaAssist Team
The government of President Daniel Noboa will modify the Exit Tax (ISD) rate. In the announcement made on Thursday, November 28, it was reported that the reduction aims to "strengthen the competitiveness of the productive sector."
Starting January 1, 2025, the ISD rate will be adjusted, favoring tariff subheadings of essential raw materials for Ecuadorian production.
During the first three months of 2025, the ISD rate will be 0%, allowing companies to import raw materials without the additional tax cost. Beginning in April 2025, this rate will be adjusted to 2.5% (half of the current rate). The Executive stated that this reduction will benefit raw materials used for the production of goods intended for both the local market and export.
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