President Daniel Noboa decided to keep the foreign exchange outflow (ISD) tax rate at 3.50% for 2024. To this end, on December 29, the President reformed Executive Order 643, which was issued on January 10, 2023.
Decree 643 established a gradual reduction of ISD. The original rule provided for the tax rate to be 3.50% until December 30, 2023; and then from December 31 the percentage would drop to 2%.
The amendment made by the president was to eliminate the last reduction and ordered the current rate to remain in effect until December 31, 2024.
During the election campaign, Daniel Noboa offered to eliminate ISD. He said this in the debate in the second round.
Former Director of the Tax Administration (SRI) Francisco Briones commented that “this was one of the predictable measures” of the Government.
“What else could I have done? Repeal the aforementioned regulation and return to 4%,” commented former government official Guillermo Lassa.
Foreign currency outflow tax is paid on money sent abroad in cash or by debit and credit cards or online payment methods.
Source: Eluniverso
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