The Official Gazette No. 73, Fourth Supplement dated July 3, 2025, published the ORGANIC LAW FOR PEOPLE WITH DISABILITIES. The following is a synopsis of the reforms provided for in Chapter X of the Law.
Income Tax
1. The additional deduction of 150% is maintained for the calculation of the taxable income tax base, with respect to remunerations and social benefits [on which contributions have been made to the IESS], paid in favor of persons with disabilities, their substitutes or caregivers. This, provided that the mentioned persons have not been hired to comply with the minimum personnel with disability requirement (4%).
2. Income received by persons with disabilities or their substitutes are exempted up to an amount equivalent to twice the basic fraction taxed at zero income tax rate.
Value Added Tax – VAT
3. Persons with disabilities are entitled to a refund of VAT paid on the purchase of goods and services of basic necessity for personal use or consumption. Such reimbursement will be made through the issuance of a check, bank transfer or other means of payment, without interest, within a period of no more than 90 days from the date the application is filed.
4. The benefit provided for may not be extended to more than one beneficiary and shall also be applicable to substitutes in accordance with the conditions prescribed in the Internal Tax Regime Law and other secondary legislation on this matter.
The maximum amount of VAT subject to refund will be up to 2 unified basic salaries in force as of January 1 of the year in which the acquisition was made.
5. In control processes in which it is identified that values were unduly refunded, the Tax Administration will be ordered to reimburse them. In cases where the undue refund has been generated by consumption of goods or services other than those of basic necessity or that such goods or services are not for personal use and consumption of the person with disability, a fine of 100% of the tax will be charged additionally.
6. There will be no limit of reimbursement in the local acquisition of the following goods for the exclusive use of persons with disabilities:
- Prosthesis.
- Orthoses.
- Equipment, medicines and elements necessary for their rehabilitation.
- Equipment, machinery and work tools, specially designed and adapted for use by people with disabilities.
- Aids for accessibility, mobility, care, hygiene, autonomy and safety.
- Special equipment and pedagogical material for education, training, sports and recreation.
- Information technology, communications and signaling elements and equipment.
- Equipment, machinery and all raw materials used to manufacture products for the exclusive use of people with disabilities.
Urban Property Tax
7. Persons with disabilities or natural and legal persons who have legally under their protection or care persons with disabilities, will benefit from a 50% exemption on the net payment of the title of urban properties.
8. The exemption is applicable with respect to a single property whose appraisal does not exceed 500 Unified Basic Wages – SBU. A proportional value will be paid on the excess.
Municipal Patent
The Decentralized Autonomous Governments, within the framework of their competencies, shall apply discounts in the payment of the municipal patent made by persons with disabilities, or natural and legal persons who have legally under their protection or care persons with disabilities.
Public Administrative Fees
10. Persons with disabilities are exempt from payment of fees for notary, consular, civil registry, identification, identification and passport services.
Importation and purchase of orthopedic, adapted and non-orthopedic vehicles
11. The importation or purchase of vehicles [orthopedic, adapted and non-orthopedic] destined for the use or benefit of persons with disabilities or legal entities that have persons with disabilities under their care, will be exempt from foreign trade taxes, VAT and ICE. The exemption does not apply to port and storage taxes.
12. The exemption shall apply to the following vehicles:
- Vehicles for personal use, provided that the following conditions are met:
- Maximum FOB value: 60 SBU.
- Type of vehicle: orthopedic, non-orthopedic and/or adapted.
- Purpose: transportation of disabled persons who cannot drive or can only drive vehicles of the referred types.
- Driving: exclusively by the person with a disability. With the exception of the following cases:
- Exceptional: if the disabled person is unable to drive the vehicle, it may be driven by persons up to the second degree of consanguinity and first degree of affinity of the beneficiary; or third parties in charge of the care of the disabled person, as long as the latter is present.
- Emergent: any person can drive the vehicle in proven emergent situations.
- Public transport vehicles, provided that the following conditions are met:
- Maximum FOB value: 120 SBU.
- Importer: non-profit legal entity whose purpose is the care of persons with disabilities.
- Type of vehicle: orthopedic and/or adapted.
- Purpose: transfer of people with disabilities.
- Driving: by authorized personnel.
13. Additionally, the following conditions must be verified [applicable to the two types of vehicle referred to above]:
- Authorization:
- By the Customs Authority in case of importation.
- By the SRI in case of local purchase of vehicle.
- More than five years have passed since:
- The release of the customs import declaration (maximum benefit: 1 vehicle imported every 5 years); or,
- Local purchase of the vehicle (maximum benefit: 1 vehicle purchased every 5 years).
- Maximum age of the vehicle:
- On imports: up to 3 years (difference between the model year and the year of shipment).
- For local purchases: the vehicle must be new (year of purchase must match the model year).
14. As a general rule, the sale or alienation of the ownership or other real property rights of the imported or locally purchased vehicle(e.g. possession) is prohibited. This, with the exception of the following cases, in which taxes must be paid in proportion to the time remaining to complete the five years for the sale to proceed:
- Sale after four years from the date of importation or local purchase. The sale, and consequent lifting of liens, must be authorized by the Customs Authority or the SRI, as appropriate, upon request addressed to them.
- Death of the disabled person. In this case, the executor or heir must apply to the competent authority for authorization of sale.
- Transfer required by the vehicle insurance company in case of total loss.
- In the event that the beneficiary person with a disability is unable to fulfill his obligation to the seller of the vehicle due to an emergent economic circumstance.
The transfer must be requested within one year of the purchase or importation, with a sworn statement from the disabled beneficiary regarding the economic circumstance that prevents him/her from honoring his/her obligations.
Import of goods
15. Persons with disabilities, as well as legal entities in charge of their care, may import goods for their exclusive use, exempt from foreign trade taxes, VAT and ICE. Thus:
- Prosthesis.
- Orthoses.
- Equipment, medicines and elements necessary for their rehabilitation.
- Equipment, machinery and work tools, specially designed and adapted for people with disabilities.
- Aids for accessibility, mobility, care, hygiene, autonomy and safety.
- Special equipment and pedagogical material for education, training, sports and recreation.
- Information technology, communications and signaling elements and equipment.
- Equipment, machinery and raw materials to manufacture products for the exclusive use of people with disabilities.
- Equipment and technical aids for sports practice and accessibility in museums, libraries and heritage sites.
- Other assets as provided in the regulations of the Law.
16. The exemptions do not include fees for customs, port or storage services.
17. The requirements, conditions and limits for imports under this modality shall be regulated by means of secondary regulations.
Discount on Services
18. Persons with disabilities, or natural or legal non-profit persons legally representing them, shall be entitled to a 50% discount on the value of the consumption/regular monthly plan of the following services:
- Drinking water and sanitary sewerage.
- Electric power.
- Mobile telephony – postpaid plans.
- Residential Internet.
- 50% discount on the value of any regular residential internet plan.
- Residential pay television or cable television.
19. The discounts will be applied only for the property where the person with a disability establishes his/her permanent residence and exclusively to one account per service.
20. If there are several social benefits applicable to the same service, the person with a disability may choose which one to apply for.
21. Non-profit entities that permanently serve people with disabilities will be exempted from 50% of the monthly consumption of electricity, drinking water and sanitary sewage and fixed telephony.
Quito D.M. / Guayaquil, July 2025
