On November 14, 2025, Ecuador’s Internal Revenue Service (SRI) issued Resolution No. NAC-DGERCGC25-00000037, which amends the current regulations defining the official list of tax havens, excluding the United Arab Emirates (UAE) from that registry. This update is a significant milestone in Ecuadorian tax policy, as it modifies the categorization of one of the most prominent jurisdictions for international trade and investment.
This article delves into the constitutional, legal, technical, and practical aspects surrounding this decision, as well as its implications for taxpayers, investors, and multinational groups operating in connection with that jurisdiction.
1. Constitutional basis: principles guiding the Ecuadorian tax system
The resolution is based on essential constitutional pillars:
1.1. Duty to contribute
Article 83 of the Constitution establishes the obligation of all inhabitants of Ecuador to comply with tax laws and cooperate with the State by paying the taxes due.
1.2. Principles of the tax system
Article 300 states that the tax system must be governed by:
- Generality
- Progressivity
- Efficiency
- Administrative simplicity
- Equity
- Transparency
- Sufficiency of revenue collection
The purification and updating of the list of tax havens responds precisely to these principles, as it guarantees transparency, equity in taxation, and protection of revenue collection.
2. Legal framework that determines the classification of tax havens
According to the second unnumbered article added after Article 4 of the Internal Tax Regime Law, tax havens are those regimes or jurisdictions that meet at least two of the following three conditions:
- Effective taxation of less than 60% of the rate applicable in Ecuador or lack of clarity in determining that rate.
- Lack of economic substance, allowing financial, productive, or commercial activities to be carried out outside the jurisdiction solely for tax benefits.
- Absence of effective exchange of information, which includes:
- Data on legal ownership and beneficial owners.
- Verifiable accounting records.
- Banking information.
- Adequate mechanisms for international data exchange.
These criteria are aligned with the standards of international organizations such as the OECD, FATF, and Global Forum.
3. The SRI’s power to update the list
The final paragraphs of the same legal provision authorize the SRI to issue and update the list of tax havens when it verifies compliance—or non-compliance—with the aforementioned criteria.
The resolution also analyzes complementary regulations, including:
- Resolution NAC-DGERCGC15-00000052 (2015), which contains the basic list of tax havens.
- The regulations derived from the 2017 referendum, which kept the 2015 list in force until further updates.
- Circular NAC-DGECCGC25-00000002 (2025), which repealed previous related provisions.
This legal and procedural framework gives the reform full legitimacy and technical support.
4. Technical analysis of the United Arab Emirates: reasons for its exclusion
The SRI used Analysis Report No. NAC-AMFIGEI25-00000007 as input, which evaluated the legal and fiscal conditions applicable to the UAE. The report concludes that the jurisdiction does not meet two of the three legal requirements to be considered a tax haven.
4.1. Elements evaluated
The analysis included aspects such as:
- The effective income tax rate in the UAE.
- The existence of economic substance in activities carried out by residents and companies.
- Standards for the exchange of financial and corporate information.
- The level of international cooperation under multilateral agreements.
4.2. SRI conclusion
Given that the UAE does not meet the necessary conditions, it is legally appropriate—and technically justified—to update the list and remove it from Article 2 of Resolution NAC-DGERCGC15-00000052.
Thus, the new resolution explicitly determines:
To remove the text “United Arab Emirates” from the list of tax havens.
5. Tax consequences of the exclusion
The removal of the UAE from the list has direct effects on the tax treatment of Ecuadorian taxpayers who have economic relations with that jurisdiction.
5.1. Transfer pricing
Transactions with related parties domiciled in the UAE:
- Are no longer automatically considered high tax risk.
- Are not subject to adverse presumptions because they originate in a tax haven.
- Continue to be subject to the Arm’s Length Principle, but with a lower presumed tax burden.
5.2. Withholding Taxes
Payments to the UAE—for interest, services, royalties, or dividends—are no longer subject to the higher rates applied to jurisdictions considered tax havens.
5.3. Beneficial Owners
Although the UAE is no longer on the list, taxpayers are still required to demonstrate:
The identity of the beneficial owner.
- The economic substance of the transactions.
- The reasonableness of the corporate structure.
5.4. Documentary compliance
The exclusion reduces the formal burden, but taxpayers must continue to adequately document:
- Transfer pricing studies.
- Intercompany contracts.
- Functional analyses.
- Evidence of economic substance.
5.5. Implications for international tax planning
The exclusion opens the door to:
- Lawful investment and financing transactions.
- Establishment of holding companies.
Use of special economic zones, provided they comply with the principles of substance, transparency, and alignment with Ecuadorian regulations.
6. Geopolitical and economic relevance of the decision
The United Arab Emirates has established itself as a global financial center, a leader in attracting foreign investment, logistics, international trade, and advanced services.
Its exclusion from the Ecuadorian list:
- Strengthens bilateral economic relations.
- Facilitates foreign trade structures.
- Increases investment opportunities in sectors such as energy, construction, technology, and transportation.
- Positions Ecuador more in line with regional and international practices.
Likewise, this update demonstrates that the Ecuadorian tax system is not static, but periodically evaluates the actual compliance with international standards by jurisdictions originally classified as risky.
Conclusion
Resolution NAC-DGERCGC25-00000037 represents a significant step in the modernization of Ecuador’s tax framework. By excluding the United Arab Emirates from the list of tax havens, the SRI reaffirms its commitment to:
- Transparency.
- International cooperation.
- Proportionality in the rating of jurisdictions.
- Legal certainty for investors and taxpayers.
- Alignment with contemporary global tax standards.
For the business sector and multinational groups, the measure offers a clearer and more competitive environment for structuring legitimate operations, promoting opportunities within a responsible and technically sound tax framework.
Do you require specialized advice on international regulations and transfer pricing?
At TPC Group, we have an expert team to guide you in tax compliance, transfer pricing analysis, and the proper structuring of your international operations. Contact us for a personalized consultation.
Contact us for a personalized consultation.
Source: SRI - RESOLUTION NR. NAC-DGERCGC25-00000037