“Kathleen, do you know where the information came from that Ecuador charges income tax on residents’ overseas income?
“It was not true when I was living there, and other expats currently residing in the country tell me that it’s still the same…they’re taxed on Ecuador-sourced income only.”
–Leonard H., Uruguay
Our information is from Deloitte’s Ecuador tax summary document, which you can read here.
Of course, taxes are complicated, and it’s difficult to make brief and general remarks. If you’re resident in Ecuador and your foreign-sourced income is taxed elsewhere, then you don’t pay taxes on it in Ecuador (as explained in the overview from Deloitte).
So it’s possible that expats residing in Ecuador are not paying taxes on their foreign-sourced income because they’re paying taxes on it elsewhere.
It’s also possible they aren’t paying taxes on foreign-sourced income because they don’t realize they’re supposed to…or maybe because they choose not to report it (whether it’s taxed elsewhere or not).
These are the kinds of questions we’ll review and address in detail, with the help of tax and offshore experts from key jurisdictions, during our Emergency Offshore Summit later this year. Full details of this timely program tomorrow.
Continue Reading: Offshore Havens
