1. Eco-Center of theWorld

2. Anethicaleconomy Ethical management of our economy, thisis the way in which the National Government has decided to reinforce the rights of our society and of the environment, through innovative and clear regulations that foster efficient entrepreneurial activities that guarantee respect for the environment, laborers and our society in general.

3. NECESSARY REFORM OF THE STATE

5. The Code portrays in a concrete way the Government’s model of productive development and economic development.

6. Dollarizacion is a monetary scheme kept

7. Promote sustitution of imports

8. To complement the dollarization model, the Code encourages:

9. Private domestic investment

11. 6 ECUADOR: AN INTELLIGENT INVESTMENT 7 STRATEGIC REASONS: COUNTRY WITH THE GREATEST MEGADIVERSITY IN THE WORLD (BY KM2) GROWING AND STABLE ECONOMY STRATEGIC LOCATION AND CLIMATE HUMAN CAPITAL AND SOCIAL INVESTMENT ACCESS TO INTERNATIONAL MARKETS 6. INCENTIVES FOR INVESTMENT WITHIN A CLEAR LEGAL FRAMEWORK 7. DOLLARIZED ECONOMY

12. INCENTIVE OBJECTIVE AFFECTING TAX Exemption from income tax on dividends and profits earned or distributed to companies (except tax havens) or non- residents of Ecuador. Seeks to encourage investment Income Tax Exemption from income generated from the occasional sale of property, shares or units. Seeks to encourage the capital market and access to housing Income Tax Exemption from capital gains, profits or income distributed by mutual funds, pension funds and commercial trusts. Seeks to avoid double taxation Income Tax Exemption from income from certificates of deposits of one year or more. Encourage savings Income Tax Aditional deduction for annual net increase in employment. Encourage employment IRS Deduction of lease payments for international trade of capital goods. Encourage production Income Tax Reduction of 10 percent of the income tax rate on reinvestment equipment and machinery Encourage investment IRS IRS Encourage investment Accelerated depreciation (by request) on durable goods. Zero tax on electricity produced and sold. Exoneration VAT CURRENT INVESTMENT INCENTIVES

13. INCENTIVES FOR PRIVATE INVESTMENT

15. The following are exempt from the minimum tax: the increased expenditures for new jobs or wage increases; acquisition of new assets for the improvement of productivity and technology; cleaner production; and all the incentives in this code.

16. For new companies: exemption from the payment of the minimum tax during the first 5 years.

18. Benefits for the opening of capital, such as deferment of income tax payment for companies that open up capital abroad.

20. Fresh and processed foods

21. Forestry products

22. Metalworking/metal processing

23. Petro chemistry

24. Pharmaceutical

25. Tourism

26. Renewable energies

27. Logistical services

28. Biotechnology and applied software

30. Prioritized public investment and specialized programs.

32. Regime for entering into the stock market.

33. Government programs of co-financing for the improvement of productivity, innovation, quality, exportable products and their promotion.

36. The benefit will not be conceded when the credits are awarded by or through institutions based in tax havens.

38. Prioritization of productive investment.

40. The importation of goods will have a Value Added Tax (VAT) rate of 0%.

41. Foreign goods will benefit from the exemption of the payment of customs duties while they remain in the ZEDE.

42. The administrators and operators will have a tax credit for the VAT associated with local purchasing (services, goods and prime/raw materials for productive processes).

43. Exemption of taxes on foreign exchange outflows in the payment of imports and in the payments going abroad for foreign financing. INCENTIVES FOR ZEDEs (SPECIAL ECONOMIC DEVELOPMENT ZONES)