Policy & Regulation
Tax reform, legislation, fiscal policy
120 articlesEcuador and U.S. Forces Conduct Joint Operation, Dismantling Alleged CJNG-Linked Drug Trafficking Network
On the morning of September 24, troops from the U.S. Southern Command, DEA agents, and members of the National Police carried out their first joint operation in Ecuadorian territory. The operation focused on the provinces of Guayas, Los Ríos, and El Oro, leading to the dismantling of a drug trafficking organization with alleged ties to the Jalisco New Generation Cartel (CJNG).
Guayaquil Accelerates Flood Mitigation Plans Amid El Niño Forecasts, Faces Execution Challenges
The Municipality of Guayaquil is advancing its Pre-Winter and Shock Plans to mitigate potential flooding from the El Niño phenomenon, projecting water accumulation levels up to 2.80 meters in vulnerable areas. While efforts began earlier this year, execution rates for both plans remain low, with targets set for completion by December.
Quito Wildfires Persist in Casitagua and La Vicentina, Judicial Actions Initiated Against Suspects
Wildfires continue to affect Quito, particularly in the Casitagua hill and La Vicentina sector, with approximately 1,200 hectares consumed across the city this summer. Authorities have filed seven complaints, leading to four judicialized suspects, one of whom is in preventive detention.
Guayaquil Mayor Aquiles Alvarez's Three-Year Prison Sentence Ratified by Appeals Tribunal
The Guayas Court of Justice's Appeals Tribunal ratified a three-year prison sentence against Guayaquil's mayor, Aquiles Alvarez, for non-compliance with a legitimate order. This decision follows an August 3 conviction related to the removal of an electronic monitoring bracelet.
Ecuadorian Companies Grapple with 'Shadow AI' Risks Amidst Significant Data Protection Gaps
Artificial Intelligence adoption is widespread in Ecuadorian organizations, but a September 2026 GMS report indicates 66% of employees use AI daily, while 70% of workplaces have basic or flawed preparation. A third of workers use personal accounts for AI work, increasing data security risks.
Ecuador Prepares for Intensified El Niño Rains as Government Mobilizes Resources and Guayaquil Records Historic Rainfall
Ecuador's Inamhi anticipates El Niño rains will intensify between November and December 2026, continuing into early 2027, following the official declaration on August 29. The government has activated a national red alert and secured over $15 million from the World Bank to acquire 73 units of heavy machinery for emergency response, with 64 units already delivered.
Guayaquil Motorcycle Registration Compliance at 25% for 2026
As of September 2026, 75% of Guayaquil's motorcycle fleet, totaling an estimated 231,799 units, remains unregistered. The Authority of Transit and Mobility (ATM) reports a current compliance level of 25% for motorcycle registration.
Ecuador Implements Temporary Curfew in Four Provinces
A temporary curfew will be in effect in Guayas, Manabí, Los Ríos, and El Oro from September 17 to September 30, 2026, restricting circulation daily between 00:00 and 05:00. The measure aims to intensify operations against organized crime.
Cayambe Hospital Project Awarded Following Years of Announcements
President Daniel Noboa announced on September 10, 2026, that the new Cayambe Hospital project has been awarded, a development that follows over six years of prior announcements. The facility is projected to benefit more than 140,000 individuals.
Ecuador Labor Ministry Reports 9,327 Inspections in 2026
Ecuador’s labor ministry says it has carried out 9,327 inspections nationwide during 2026. A USD 9,640 sanction in La Troncal shows how IESS affiliation, disability-inclusion quotas, and cooperation with inspectors can combine into a maximum penalty.
Ecuador’s Proposed USD 240 Million Hospital Platform Is an Execution Test
Ecuador’s Ministry of Public Health is advancing a proposed USD 240 million interoperable health platform involving CNT and Italy’s Dedalus. The key business variables are procurement award, infrastructure delivery, phased rollout, and the October technical-operating target.
SRI September Projection Window Reopens a Withholding Lever for Qualifying Employees
The SRI allows qualifying dependent employees earning more than USD 12,208 annually or USD 1,017.33 monthly to update personal-expense projections through September 30. The change can affect monthly income-tax withholding, but unsupported expenses may create a later payment difference.
CNE Adds Online Card Payments to the Electoral-Fine Collection Stack
Ecuador's National Electoral Council says electoral fines can now be paid online with Visa and Mastercard through cne.gob.ec. The change expands the collection stack ahead of the November 29, 2026 sectional and CPCCS elections while leaving bank and Facilito routes in place.
Ecuador Census Review Raises a Data-Quality Risk for Local Analysis
An international review requested by INEC says VOPA imputation reached 4.7% to 5%, representing 759,103 people not directly counted, and rose to 10% when incomplete and corrected records were included.
Pachakutik Faces a September Electoral and Registration Test
The TCE is scheduled to hold a September 3 evidence hearing involving CNE allegations about missing financial reports and documents tied to the April 2024 referendum campaign.
Guayaquil Employment Fair Offers 3,000 Vacancies, but the Market Data Is Still Incomplete
The Ministry of Labor is holding an 80-company job fair at the Instituto Tecnologico Bolivariano on August 21. The event offers about 3,000 vacancies while INEC has not yet published the June or second-quarter 2026 labor surveys.
Ecuador Advances Three-Phase Plan for 222 Temporary Judges
Ecuador’s Council of the Judiciary approved a three-phase methodology to appoint 222 temporary judges during the judicial emergency declared in July. The process addresses court capacity but leaves open questions about the duration and institutional safeguards of temporary appointments.
Ecuador Wants Tax Incentives Tied More Closely to Results
Ecuador is reviewing its tax-incentive system under the ACE 2040 agenda, with a proposed emphasis on results rather than broad eligibility. The redesign could affect how companies evaluate future investment support.
Education Ministry Directs USD 1.354 Million Toward El Nino School Resilience
Ecuador will direct more than USD 1.3 million toward school prevention and mitigation before possible El Nino effects. The identified allocations include USD 1.044 million for infrastructure work and USD 310,000 for flood-mitigation kits.
Ecuador’s New Economic Ministry Sets Six Vice Ministries
The new architecture covers finance, economy, production and tourism, foreign trade and investment, agricultural production and rural development, and aquaculture and fisheries.
Evergreen Resources
Starting a Business in Ecuador
Step-by-step guide to starting and operating a business in Ecuador: legal structures, registration, licensing, labor law, tax obligations, and regulatory compliance.
Ecuador Tax Guide
Comprehensive guide to Ecuador's tax system for businesses and individuals: corporate tax, VAT, income tax, property tax, and special economic zone incentives.
Ecuador Employment Guide
Employer guide to Ecuador labor law: contracts, wages, benefits, termination, unions, and expat employment requirements.