CONTRATO DE INVERSIÓN E INCENTIVOS TRIBUTARIOS COMO MECANISMOS DE ATRACCIÓN DE INVERSIÓN PRIVADA

Abstract

The different tax incentives offered by a legal system are mechanisms for attracting private investments, either national or international. An investment supposes revenues, and as consequence, the corresponding tax payments. Therefore, the State offers tax incentives to private investors to expand the investments’ fields in the country and to increase productive capacity. There is a legal method that ensures greater protection to an investor, and it is the investment contract, characterized for freezing the tax incentives and for ensuring the rules of the game in favor of the private investor. This is important due to the multiple legal reforms in the past ten years in Ecuador. So, through this paper, we’ll study how tax incentives operate in Ecuador and how important it is to include them in the investment contract, as a mechanism to ensure freezing tax regulations.