Progressive reduction of the rate of the Foreign Currency Exit Tax (ISD) Ecuador as of October 1, 2022

Dear reader

We remind you that by means of Executive Decree No. 298 issued on December 22, 2021, the Constitutional President of the Republic of Ecuador ordered the progressive reduction of the Foreign Currency Outflow Tax (ISD) rate.

Currently the rate is 4.25% and will be reduced by a percentage equivalent to 0.25% as of October 1, 2022, according to the following table:

Reducción                                              Fecha de Reducción                                          Tarifa ISD aplicable
First                                                              January 1, 2022                                                                4.75%
Second                                                          April 1, 2022                                                                     4.50%
Third                                                             July 1,  2022                                                                     4.25%
Forth (final rate)                                       October 1, 2022                                                                 4.00%

Transitional provision:

• The Internal Revenue Service fifteen (15) days before the indicated dates, will modify any resolution of a general nature and will update the corresponding forms.

• ISD withholding and collection agents will make the necessary adjustments to their operating systems.

• While the necessary adjustments are being made, the regulated entities may request the SRI the massive cancellation of the withholding voucher that had been issued considering a rate different from the current one.

Note: This bulletin is “informative”, so it is not, nor can it be used as advice, consultancy or legal opinion. If you have any concerns, please contact the email

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