Tax Credit Law is now official

Last Monday the Government published in the Official Gazette, the Organic Law of Incentives for the Productive Sector, designed to compensate the affected export sector due to the unilateral withdrawal from Ecuador to the benefit of the ATPDEA tariff preferences, with the issuance of Tax Credit Certificates (CAT).

The National Customs Service, must grant these tax credits within a maximum period of five days, as a credit in favor of natural or legal persons that do export, under the conditions of the new law.

One of the terms states that if an exporter unduly benefits from the CAT through false statements or other proceedings by seeking to obtain a higher value than the entitled one, they shall be punished with a fine equal to three times the wrongfully obtained amount and will be expelled from the benefits of this law.

The law has 20 articles, three transitional dispositions, two derogatory ones and one final disposition.

Tax Credit Law may now support the Export Sector.