5% external transfer tax

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  • #485853

    What exactly is Ecuador’s 5% external transfer tax, and how would it affect bringing money into Ecuador, and more importantly taking money out of Ecuador?

    #486017
    SUZAN HASKINS
    Participant

    Hi Thomas, as attorneys and officials in Ecuador like to say, it is not a “tax” but a “fee.” Almost every country in the world these days, attaches this ‘fee’ on money leaving the country. It does not affect money coming into Ecuador and is only assessed on money leaving Ecuador. This is relatively new and they’re still working the kinks out of it. For instance, at first it was only on sums of $10,000 or (something like that) and some exporters were getting around it by sending lots of small transactions — $1,000 at a time, for example. So they changed the rule yet again.

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