The petroleum sector is the country’s largest employer. Further major sectors of the economy include chemicals, manufacture of textiles, wood products, food processing, and tourism. Ecuador has potential to develop its industries in a variety of sectors with the United States, Colombia and Brazil its chief trading partners. The generation of power is one sector where this potential has been recognized and is now being developed.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Ecuador. Forward planning is of the essence to optimize costs. Ecuador has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Ecuador, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Ecuador, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.