The Official Gazette No. 80, Fourth Supplement dated July 14, 2025, published the ORGANIC LAW FOR THE STRENGTHENING OF PROTECTED AREAS. The following is a synopsis of the tax reforms introduced in this Law.
Internal Tax Regime Law – LRTI
- In the article numbered after Art. 65, the phrase in bold type is deleted:
The reduction of the tariff will apply to services whose generating event occurs on the dates specified in the executive decree.
Art. (…).- Subject to the favorable opinion of the Ministry of Economy and Finance, the President of the Republic of Ecuador, by means of an executive decree, may reduce to 8% the general Value Added Tax rate for the rendering of services defined as tourist activities in accordance with Article 5 of the Tourism Law during national or local holidays, and on Saturdays and Sundays preceding or following them, without exceeding a total of 12 days in each year.
Tax Reform Law
- In Art. 6, the following paragraph is included, text in bold:
Art. 6.- Exemptions: The following vehicles are exempted from the payment of this tax:
(…)
e) Electric vehicles for private use. For the purposes of this exemption, electric vehicles shall be understood as those propelled solely by electric energy sources and whose battery charge exclusively uses this type of energy source. In addition, they must produce zero direct polluting emissions. In no case shall vehicles that have self-generation systems with an internal combustion source, regardless of their configuration, be understood as electric vehicles. This exemption does not apply to motorcycles.
- In the General Provisions, the following text is included in bold type:
Third. – Manufacturers and importers of vehicles shall report to the Internal Revenue Service, until November 30 of each year, the characteristics regarding the motorization of each vehicle.
This Law shall become effective as of the date of its publication in the Official Gazette.
Quito D.M. / Guayaquil, July 2025
