투자 환경 및 비즈니스 기회

The center of great opportunities
Business Languages: Spanish (official) & English
Capital: Quito
ECUADOR
Area: 257,217 Km2
Time Zone: GMT -5 horas
Currency: US Dollar
Population: 16.7 M approx. (14.5 M en census 2010)
Nominal GDP: USD 100,871 M (2015 BCE)
M = millions

Access to a market of
300 million
people
EcuadorThe center of great opportunities

Multiparty Agreement
with the European Union
In process for approval
Trade Agreements
Argentina, Brazil, Chile, Cuba, Guatemala,
Iran, Mexico, Paraguay, Uruguay, Venezuela
and Nicaragua (signed).
Trade Agreements under
negotiation
South Korea, Cuba, El Salvador, Honduras
and Turkey.
To begin Negotiations
Canada, Costa Rica, EFTA (Iceland,
Liechtensten, Norway, Switzerland)

Double taxation treaties
*Source:CoordinatingMinistryofProduction,Employmentand
Competitiveness

Ecuador has achieved significant growth in the last decade
*Source:CentralBankofEcuador
Low external
debt / GDP
GDP per capita
Ecuador GDP per capita in
2015 was $6,196
Upper middle
income country
Gross Net Income per cápita
on Purchasing Power Parity
(2015) $11,300
20.80% of GDP (February
2016)
Investment
FDI flows show a growth
of 24% up, from 2007 to
2015
Unemployment
One of the lowest in
South America 4,3% at
September 2015
FBKF
Annual average of 25.1% of
GDP (2007-2015)
Economic Social - Politic
Political Stability
Democratic elections
ratifications
Improved HDI 0.732,
ranking eighty-eighth
(88) of 188. From
2000 to 2015 Ecuador
has climbed 5
positions, which places
it in a high human
development
Social
Development

USD 8,000 millions
9,200 km of new highways.
Public investment in road network
USD 329 millions
Invested between 2007-2015 which include 2
new airports, 10 refurbished, with air
navigation systems optimization at airports
nationwide.
USD 1,245 millions
Public investment in 6 multipurpose
water projects
USD 5,900 millions
In hydroelectrical plants investment
until 2015
In 2017 is expected to have 8768
MW installed capacity
*Source:CoordinatingMinistryofProduction,Employment
andCompetitiveness
60,000km
Of optical fiber cable. ITC development
presents a growth rate of 75%
compared to 2007.
Strategic and Competitive infrastructure

*Source:WorldBank–2014
*SourceOLADE–Año2014
*Source:MetropolitanPublicCompanyofDrinkingWaterandSanitation-2014
1.5$kilowatt per
hour
Per liter of
diesel
Per cubic
meter
Costs of essential services for industries
9¢
32¢

Definition of investment and investor rights in the Organic
Code of Production, Trade and Investment

New and productive investment
Productive Investment Art. 13,
literal a
Flow of resources to produce goods and services, to
expand production capacity and generate employment in
the national economy.
New Investment Art. 13, literal
b
Flow of resources to increase the capital stock of the
economy: through investment in productive assets that
extends the future productive capacity, generates a higher
level of production of goods and services or generates new
jobs.
Essential elements
 Flow of resources
 Increase in capital stock in the economy through the acquisition of productive assets
 Generation of new goods or services / expansion of the productive capacity of existing
 Generation of new job sources

What is not investment for the purpose of OCPTI?
The change of ownership of productive assets
which are already in operation.
The activity which only involves the distribution
or marketing, in which there is no production of
goods or services.
The granting of credit to acquire productive
assets.

OCPTI features
Non discriminatory treatment
Domestic and foreign investors have equal conditions for
investment.
Legal security
Right to property
Investment contract
Domestic and foreign investors enjoy protection and
security.
Right to property is guaranteed and all forms of
confiscation are prohibited for domestic and foreign
investment.
Contract up to 15 years, renewable once again, by the
same original duration.

OCPTI features
Investor rights
Art. 19, Book II
 Freedom of production and trade of legal goods and
services;
 Access to administrative procedures and control
measures established by the State;
 Freedom of import and export of goods and services
except those limits established by the current law;
 Free foreign Exchange outflow of regular earnings or
profits once fulfilled the corresponding obligations;
 Freedom to acquire, transfer or dispose of shares or
property rights on investment;
 Free access to national financial system and the stock
market.

Productive matrix model
Technology and eco-efficiency transverse axis
• Natural and strategic
enabling conditions
• Prioritized sectors
• Legal framework:
OCPTI and PPP law
• Business ethics
• Employment generation
• Technological transfer
• Added value
• Productive chain
• Increase exports
INVESTMENT

Incentives and benefits
for investments

Prioritized investment sectors according to Productive matrix’s
change strategy
To generate added Value To substitute imports
Petrochemical
Fresh, frozen and
industrialized food
Agroforestry chain and
processed products
Tourism
Foreign trade logistics
services
Biotechnology and applied
software
Pharmaceutical
Metalworking
Renewable
Energy
Radios, TVs and
mobile phones
Chemical products
Ceramic products Pesticides and agricultural
products
Leather footwear
Garments and textiles Soaps, detergents, perfumes
and toilet preparations
Home appliances
Basic chemical
sustances
Cement products

Main tax and tariff incentives
Income tax
• Exoneration for 5 years for new investments in priority sectors and
companies outside major cities (Quito and Guayaquil).
• Exoneration for 12 years for basic industries.
• Double deduction of annual depreciation expense for 5 years of
investment in new productive assets, to companies outside major cities
(Quito and Guayaquil)
• Double deduction of depreciation and amortization expense corresponding
to the acquisition of eco-efficient assets
• For Special Economic Development Zones, is reduced from 22% to 17%
income tax.
• 10% reduction of income tax rate on the amount of profits reinvested in
investments in productive fixed assets.
Taxes on foreign trade
• Tariff exemption for imported goods and 0% VAT for imports from
companies operating in Special Economic Development Zones.

Investment incentives for the areas affected by the earthquake
Income tax
Productive investment: Exoneration for 5 years.
Tourism sector: Up to 10 years of exoneration.
Financial entities: 2 year exemption and reduction in the value
of the advance on income attributable to loans to affected areas
and reduction in the value of the advance income tax 2016, in
proportion to the amount of loans granted from 16 April 2016 until
31 December of the same year.
Taxes on foreign trade
Tax exemption foreign Exchange outflow and tariffs imports
in favor of taxpayers who have suffered an economic
involvement in productive assets intended for production
processes or service delivery (until May 2017).
Financing incentive
The Ministry of Finance, with the resources obtained through
solidarity contributions may pre-cancel investments, invest or
transfer such resources for loans granted by financial and non-
financial institutions.
Normativa: Ley Orgánica de Solidaridad y de Corresponsabilidad Ciudadana

Stability through
Investment Contracts

Subscription of Investment Contracts
Description
• 15 years on tax and tariff
incentives applicable to
investment project.
• Renewable up once
(maximum for 30 years).
Stability
Optional agreements that the businessman can apply to ensure their new and productive
investments greater than US $ 1 million and generating new direct jobs, primarily offers the
following incentives:
Tariff reduction
• The signing of the
investment contract allows
you to request reduction of
tariffs for imported capital
goods.
• Reducing tariffs may be
total or partial.
• Establishes mechanisms
for dispute resolution.
• Arbitration may be local
and international.
Security

5
2012
9
2012-2013
19
2012-2014
63
2012-2015
82
2012-2016
Signed
contracts
80% investment
with foreign
capital
Results up to date
USD 5.217 millions
and 7.235 direct
jobs

Process
CONTACT WITH THE
INVESTOR-
INVESTMENT
PROJECT
PRESENTATION
1
2
3
4
5
6
7
START TIME 30
WORKING DAYS
ACCORDING OCPTI
INVESTOR KIT SENDING
WITH THE
REQUIREMENTS FOR
THE CONTRACT SIGNING
VERIFICATION OF
DOCUMENTS TO BE
DELIVERED ON THE BASIS
OF REQUESTED IN THE
INVESTOR KIT
OFFICIAL DELIVERY OF
MATERIALS REQUESTED IN
INVESTOR KIT
PREPARATION OF A
REPORT TO BE
PRESENTED TO CPS
PROJECT APPROVAL BY
THE COUNCIL OF THE
PRODUCTION SECTOR
CONTRACT
SIGNING
• DRAFT PREPARATION
• DRAFT APPROVAL BY
THE INVESTOR
30
DAYS
60 DAYS

External Financing incentives,
Financial investment and Dividends

Incentives for External Financing, Financial Investment and
Dividends
For external financing
operations of financial or non-
financial institutions, for a period
greater than one year:
• No income tax is retained
(interest).
• Free foreign Exchange outflow
(5%)
• This includes capital as
interest paid.
For investments in fixed deposits
and fixed income instruments,
period greater than one year:
• No payment of income tax on
profits.
(5%) in transfers abroad.
• This includes capital and financial
returns.
For dividend payment abroad
(Law on Environmental
Development):
(5%) in transfers abroad.

Special Economic Development Zones

They are delimited areas of the country,
identified as a customs destination for new
investments transfer activities and
disaggregation of technology and innovation,
industrial diversification and logistic services
ZEDE Eloy Alfaro
Location: Manabí
Petrochemical, Industrial and Logistics
ZEDE Yachay
Location: Imbabura
Technology, Logistics and Industrial
ZEDE ELOY ALFARO
ZEDE Posorja
Location: Posorja
Logistics, Industrial
ZEDE POSORJA

Incentives
Incentives for companies
located in SEDZ
• 17% rate of the Income Tax
• Exemption from the payment of tariffs on foreign goods entering
such areas, for the performance of authorized processes
• 0% rate of VAT on importation of goods intended exclusively for
the licensed area or incorporated in one of the processes of
productive transformation developed there
• Tax Credit in the VAT paid on the purchase of raw materials,
supplies and services from the national territory that are
incorporated in the production process.
• The exoneration of the Currency Outflow Tax on imports of
goods and services related to their authorized activity
• The exoneration of the Currency Outflow Tax for the payment of
external financing operations.

MSMEs Incentives
TRAINING
• Technical training directed at
the research, development
and technological innovation.
• Up to 1% of wages and
salaries
IMPROVE PRODUCTIVITY AND
BUSINESS DEVELOPMENT
• Technical assistance and market
analysis of competitiveness;
assistive technology process
design, product, adaptation and
implementation of processes,
packaging design, development
of specialized software.
• Up to 1% in sales.
PROMOTION
• Travel expenses, lodging and
commercial promotion for access
to international markets, such as
business conferences,
participation in international fairs.
• Up to 50% of promotional
expenses.
MSMEs, for 5 years will have the right to deduct a 100% additional of expenses related to the
following items:

Environmental Incentives
Depreciation and amortization that
correspond to the acquisition of
machinery, equipment and technologies
for the implementation of mechanisms
for cleaner production, mechanisms for
the generation of renewable energy
(solar, wind or similar) or to the
reduction of the environmental impact of
the productive activity, and to the
reduction of greenhouse gas emissions.
Are deductible with the
additional 100%:
Art 10.7 LORTI (Art. 24.1 COPCI

Incentives for companies which invest in depressed areas
For the calculation of income tax will have an additional 100% deduction of costs for wages, salaries and
social benefits by generating new employment in depressed areas for 5 years.
Ej: Cantón Pujilí, Cotopaxi
• 16km (15 min) from Latacunga airport
• 9.7km (9 min) of the Panamericana Sur
• 99 km (1h20m) from Quito
Ej: Cantón Salitre, Guayas
• 52 km (55 min) from airport and port of Guayaquil
• 38 km (24 min) from Babahoyo and E25 road

Private – Public Partnership PPP
Incentives

Definition
Legal Financial Scheme
Agreed between a public delegator entity and a private
investor (or more) entity for the provision of infrastructure
Supported in Services
They differ from traditional public works for the long-term
provision of services of general interest.
Balance
They have adequate risk distribution, and financing can be
public, private or mixed.
Remuneration
It may cover through the payment of end users of the
service, or through deferred payments during the life cycle of
the project by the delegating entity

Type of projects
New work
• Construction
• Equipment
• Operation and maintenance
Existing Public Work
• Rehabilitation or improvement,
operation and maintenance
• Equipment
• Operation and maintenance
Construction and merchandising
• Real estate housing projects of social
interest
• Urban development works
Research and development
• In which the State participates directly
and with private sector attendance
• Other qualified as priorities by the
Committee

Prioritized sectors
Provision of goods, works or services in areas of general interest:
Infrastructure Urban Development
Real estate projects
Roadways Ports
Airports
Hydropower Alternative
energies
Strategic sectors
Utilities: by exception

Advantages
FOR THE STATE FOR PRIVATE
• Satisfy service or public work
• Shared risk, risk transfer
• Tax Relief
• Possibility to Access indirectly to funding
• Utilities coverage guarantee at long term
• New investment opportunities now
available
• State sponsorship for private investment
projects
• Independence in financing and progress in
work or operation
• Attractive tax benefits
• Legal security in their contractual
relationship

Incentives
• Tax income exemption for
10 years from the first fiscal
revenue.
• Free foreign Exchange
outflow (5%) on imports,
financing and dividend
payments.
Taxes
The projects under the PPP model have a tax and tariff treatment similar as if it would be
executed by the State
Tariff reduction
• Exemption of tariffs on
imports related to the
project.
• VAT exemption on imports
related to the project.
• Stability on essential
aspects of the
development of investment
and applicable incentives.
• Possibility to turn to
national or international
arbitration in case of
disputes.
Security

Fiscal
sustainability
Risk
distribution
Value for
money
Interests respect
and right users
Property
rights
Coverage
and social
inclusion
For the structuring, approval and implementation of
public projects under the PPP mode should apply these
Principles and Guidelines:
Guidelines established by law

Approval procedure
DELEGATOR
ENTITY
DECLARES OF
PUBLIC INTEREST
THE PROJECT
PREPARES
TECHNICAL, LEGAL
AND FINANCIAL
STUDY
REQUESTS
PROJECT
APPROVAL AND
IMPLEMENTATION
OF INCENTIVE
PRE-CONTRACTUAL PHASE
CHECK THE LEGAL,
TECHNICAL AND
ECONOMIC STUDY
AND COMPLIANCE
PPP GUIDELINE ,
AND ISSUES
REPORT FOR THE
COMMITTEE
APPROVES OR
REJECTS THE
PROJECT AND
LEGAL BENEFITS
CONTRACTUAL PHASE
PPP COMMITTEESECT. TEC. PPP
DELEGATOR
ENTITY
PRIVATE
MANAGER
SELECTION
PROCESS AND
ALLOCATION
SIGNING CONTRACT
MANAGEMENT
DELEGATE

Investor route
Pre investment - Research Support and Technical
Assistance
Post Investment
Follow up investmentsSpecialized scheduleSpecialized consultancy
• Investor’s Guide
• Specialized information
• Sectoral profiles
Site visits
Expert advice on the implementation
process in the country
• Due diligence
• Investment contract (optional)
• Attention and channeling difficulties
Linking with public and private sector
Guidanceandassistance
Advisory/Implementation
After-Care
Articulation for the
internationalization of
business through our
institutional services
RUTA DEL INVERSIONISTA
Investment climate promotion
• Investment projects
• OCPTI
• PPP Law
• Investment contracts
Matchmaking with local actors
It is the set of services provided to potential investors to facilitate the installation of
the project.
What is PRO ECUADOR route FOR THE INVESTOR?
Investor file

Investment promotion tools
http://www.proecuador.gob.ec/wp-
content/themes/proecuador/cambios2014/descargas/GuiaInversionist
a2016-min.pdf
Project catalog:
Investor’s Guide:
https://www.dropbox.com/sh/bcy4h03qzrigh72/AACRe-2T-
GBMty6plVf7Pckza?dl=0
Investor’s form:
Investor’s kit:
PPP Law:
https://www.dropbox.com/sh/hy1b0xffe3e7n3k/AAB0tJrKrh-
dt3r_LcG8iYJsa?dl=0
https://www.dropbox.com/sh/lptbu2072lbs96i/AADTdnXT5zzmf8YUSS6hw
QrIa?dl=0
https://www.dropbox.com/sh/esrk68fn1d3rknf/AAAI
wILYv7UrB1yFKM6qEdv_a?dl=0

Strategic sectors
Coordinator of Strategic Sectors Ministry focuses on management for rational, sustainable and efficient
exploitation of mining, hydrocarbons and water resources, and the effective provision of public
telecommunications services and electricity; generating maximum social benefit and economic impact with
minimal environmental involvement, aimed at guaranteeing the rights of the population.
BASIC INDUSTRIES
MINING
OIL
BIOENERGY
2 Projects
USD 1.155 MM
ELECTRICITY AND
RENEWABLE ENERGY
WATER
RESOURCES TELECOMMUNICATIONS

Investment intentions notification procedure for Strategic sectors
Company
Intention letter- offer +
NDA
Sectorial Ministry and/or
MICSE
Proposal evaluation +
analysis responsibility
Sectorial Coordinator
Ministry
Optional: commitments
instruments sign: MOU,
termsheet, others
Company + Sectorial
Ministry and/or
Coordinator Ministry
Negotiation
Company + Sectorial
Ministry and/or
Coordinator Ministry
Sign contract
Company + public party

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