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Dividend tax in Ecuador 2026
Since 2025, Ecuadorian dividends to resident individuals settle at a flat 12%, withheld by the paying company.
Foreign investors do better: 10% — unless the company failed to disclose its full ownership chain, or a haven link exists with an Ecuador-resident beneficial owner — those two cases push the rate to 14%.
At a glance
- top rate
- 12% (residents); 14% (undisclosed chains)
- entry band
- 10% for non-residents
- tax year basis
- Withheld on distribution
- filing deadline
- Annual report on foreign dividends due each May
- residency basis
- Residents also taxed on foreign dividends, with a capped credit
- regime flag
- Reinvested-profit distributions exempt up to 3 basic salaries per company
Rates
How dividends are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 12% | Gross dividend | Distributions by Ecuadorian companies to resident individuals — withheld at source |
| 10% | Gross dividend | Non-resident individuals — full ownership chain disclosed |
| 14% | Gross dividend | Non-residents where the chain is undisclosed or includes a tax-haven link |
| 0% | Up to 3 basic salaries per company per year | Profits reinvested and distributed as new shares (USD 1,446 in 2026) |
| 0-37% scale | Gross dividend | Foreign dividends of residents — with a foreign tax credit capped at the Ecuadorian liability |
Residency
Residency trigger
The company withholds on distribution; loans and donations to shareholders and related parties count as advance dividends with the same withholding.
Non-resident treatment
Where a non-resident entity's ultimate owner is actually an Ecuador resident, the distribution runs through the resident's progressive scale instead.
Notes
- After-tax income distributed by investment funds and trusts is exempt in the holder's hands.
- Foreign dividends belong in the annual profit-and-dividend report filed each May.
- No deductions attach to dividend income — the flat rate is the whole calculation.
FAQ
How are dividends taxed in Ecuador?
At a flat 12% withheld at source for residents since 2025; non-resident investors pay 10%, or 14% only where the chain is undisclosed, or runs through a haven with an Ecuador-resident beneficial owner.
Is there any dividend exemption in Ecuador?
Yes — profits reinvested and paid out as new shares are exempt up to 3 basic salaries per company per year (USD 1,446 in 2026).
Figures: tax year 2026, compiled from public sources. Not tax advice.