Convenios para evitar la doble tributación en Ecuador, ventajas y limitaciones de su aplicación. Caso Continental Tire Andina S.A. Período 2015

Abstract

The Economic Globalization has affected all countries due to the large volume of financial transactions between each other. This has led them to seek a mutual integration. Therefore, the Double Taxation Agreements appear in order to promote foreign investment, tax collection and prevent tax evasion.

The United Nations made the first efforts so as to search for a solution to solve the problems of double taxation. Later, this task was taken and worked by the Organization for Economic Cooperation and Development, establishing a model of agreement.

In this process, since 1986, Ecuador has negotiated double taxation agreements. Currently, Ecuador has agreements with nineteen countries.

For the case in analysis, the application of Double Taxation Agreements in Continental Tire Andina, has promoted economic relations with those foreign companies, without a permanent establishment in Ecuador. Having clear rules has facilitated negotiations; has avoided double taxation and has allowed to the company to celebrate contracts under better economic conditions. However, the direct advantage in applying these agreements is to be able to deduct the total amount for the payments of services from abroad to calculate the Income Tax, thus its tax burden can be optimized.

In addition, in order to avoid the abuse with these agreements and to demonstrate the relevance of the expenditures, the tax regulations in Ecuador establish as requirements: Fiscal Residence Certificate and Foreign Auditors Certificate, both have become as a constraint to its application and they could be replaced by other control methods.