In the last week of fiscal year 2023, the Director of the Ecuadorian Tax Authority issued several resolutions about Excise Tax (ICE in the Spanish acronym) which apply as of January 1, 2024. Below we present an excerpt of the most important points from each resolution:
Resolution NAC-DGERCGC23-00000038
This establishes the specific rates of Excise Tax (ICE) applicable as of January 1, 2024.
|
TAXED GOOD |
SPECIFIC RATE EFFECTIVE FOR 2024 |
|
Cigarettes |
US$0.16 per unit |
|
Alcohol (uses other than alcoholic beverages and pharmaceuticals) and alcoholic beverages |
US$10.15 per liter of pure alcohol |
|
Artisanal Beer |
US$1.52 per liter of pure alcohol |
|
Industrial Beer |
US$13.28 per liter of pure alcohol |
|
Non-alcoholic beverages and sodas with a sugar content of more than 25 grams per liter of drink, except energy drinks |
US$0.18 per 100 grams of added sugar |
|
Plastic Bags |
US$0.08 per plastic bag |
Resolution NAC-DGERCGC23-00000039
This regulates the tax base for the calculation of the ad valorem rate of Excise Tax (ICE) on alcoholic beverages, including beer. The manufacturer’s selling price and the ex customs price for fiscal year 2024 is set at FOUR US DOLLARS AND SIXTY CENTS (USD 4.60) per liter of drink.
Resolution NAC-DGERCGC23-00000040
This establishes the annual exempt allowance for Excise Tax (ICE) applicable for fiscal year 2024, for new brands of alcoholic beverages, including beer, subject to the share of ingredients purchased domestically compared to total purchases:
|
Relationship between the share of purchases of domestic ingredients compared to total purchases (including imports), for the local manufacture of alcoholic beverages |
Excise Tax Exemption calculated without any benefit |
|
|
From |
Up To |
% |
|
0 |
69.99% |
0% |
|
70.00% |
75% |
0.5% |
|
75.01% |
80% |
1.0% |
|
80.01% |
85% |
1.5% |
|
85.01% |
90% |
2.0% |
|
90.01% |
95% |
3.0% |
|
95.01% |
99% |
4.0% |
|
99.01% |
100% |
5.0% |
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