National incentives

摘要

The 2008 constitution establishes that the state will promote foreign direct investment that complements national investment and supports the National Development Plan for 2018-21. The plan promotes public investment in infrastructure and strategic sectors through public-private companies in which the state has a majority stake. In exceptional circumstances, the state can allow a private enterprise to work in a strategic sector (Article 316 of the 2008 constitution). The Law on Incentives for Public-Private Partnerships and Foreign Investment of 2015 creates a committee that oversees the regulation of public-private partnerships (PPPs). It offers tax-exempt status for ten years to PPPs created to develop needed public infrastructure projects. The PPPs are exempt from a foreign-exchange tax. The Code of Production, Commerce and Investment of 2010 allows investors to forgo paying a required tax advance (based on a company's income in the previous year) for a new investment project for five years if approved by the Ecuador Technical Planning Secretariat (Secretaria Tecnica Planifica Ecuador).