On December 30, 2025, the President of the Republic issued Executive Decree No. 272, by which he modified the tax rates of the Tax on the Exit of Foreign Currency – ISD applicable as of January 1, 2026. Thus:
1.- Differentiated tax rates
The applicable tax rates are as follows:
| Sectors | DME RATE |
| Tariff subheadings of the pharmaceutical sector | 0% |
| Production sector tariff subheadings | 2,5% |
The specific identification of the subheadings, as well as the technical criteria and application parameters, will be made by means of an agreement to be issued by the governing body of production, trade and investment.
2.- Fiscal space
The Decree introduces the concept of “annual fiscal space”, the delimitation of which will correspond to the Ministry of Economy and Finance. This will be the maximum limit for the application of the differentiated tax rate during 2026.
3.- Interinstitutional control
A quarterly control and follow-up mechanism is established, in charge of the Ministry of Production, the SRI and the SENAE, with periodic reports to the Ministry of Economy and Finance. In case of risk of exceeding the fiscal ceiling, the Executive may adopt corrective measures to preserve the fiscal balance.
Practical implications
The Decree does not establish a benefit of automatic application. Its operability will depend on the express inclusion of the tariff subheadings in the corresponding ministerial agreements and the availability of the defined fiscal space.
Consequently, taxpayers must carry out a comprehensive analysis of their import and production chain, correct tariff classification and financial planning. This, in order to anticipate the incidence and effective application of the differentiated tax rates.
This Executive Order is effective as of January 1, 2026.
Quito D.M. / Guayaquil, January 2025
