On 28 February 2015, Ecuador published Decree 580 in the Official Gazette, which clarifies certain aspects of the Organic Law to Promote Production and to Prevent Tax Fraud published 29 December 2014 and effective from 1 January 2015.
One of the main measures of the Organic Law is that income derived by residents and nonresidents from the sale of direct or indirect participations representing the capital of an Ecuadorian company or permanent establishment is taxable in Ecuador. Decree 580 c…