On an urgent economic basis, on September 28, 2015 the Executive sent a bill of law aimed at Incentives for Public-Private Associations and Foreign Investment to Ecuador’s National Assembly, where its scope is currently being studied and discussed.
The bill’s main objective is to invigorate the economy by attracting foreign and domestic investment. It seeks to incentivize projects for construction, operation, equipping and maintaining new and existing public works, as necessary in any of these spheres. Also included are projects for construction and marketing of affordable housing, urban development, production activities and research.
It likewise seeks to increase project liquidity and profitability via special legal considerations for public-private associations that are created or structured, by affording them the same tax treatment that current law gives to government corporations, and additional benefits introduced through legal reforms of other regulations.
The bill of law proposes nine amendments to the Production Code, fifteen to the Internal Tax Regime Law, four to the Law for Tax Equity in Ecuador, one to the Organic Code for Territorial Organization, Autonomy and Decentralization, among others, which can be analyzed in further detail using a comparative matrix of each existing law and its amendments.
Contact
Sebastián Córdova: scordova@ferrere.com