투자 환경 및 비즈니스 기회
TRANSCRIPT
INVESTMENT CLIMATE
The center of great opportunities
Business Languages: Spanish (official) & EnglishCapital: Quito
ECUADOR
Area: 257,217 Km2
Time Zone: GMT -5 horasCurrency: US DollarPopulation: 16.7 M approx. (14.5 M en census 2010)
Nominal GDP: USD 100,871 M (2015 BCE)
M = millions
Access to a market of
300 millionpeople
EcuadorThe center of great opportunities
Multiparty Agreement with the European UnionIn process for approval
Trade AgreementsArgentina, Brazil, Chile, Cuba, Guatemala, Iran, Mexico, Paraguay, Uruguay, Venezuela and Nicaragua (signed).
Trade Agreements under negotiationSouth Korea, Cuba, El Salvador, Honduras and Turkey.
To begin NegotiationsCanada, Costa Rica, EFTA (Iceland, Liechtensten, Norway, Switzerland)
Double taxation treaties
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oord
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Min
istry
of P
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Ecuador in figures
Ecuador has achieved significant growth in the last decade
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Low externaldebt / GDP
GDP per capitaEcuador GDP per capita in 2015 was $6,196
Upper middleincome countryGross Net Income per cápita on Purchasing Power Parity (2015) $11,300
20.80% of GDP (February 2016)
InvestmentFDI flows show a growth of 24% up, from 2007 to 2015
UnemploymentOne of the lowest in South America 4,3% at September 2015
FBKFAnnual average of 25.1% of GDP (2007-2015)
Economic Social - Politic
Political StabilityDemocratic elections ratifications
Improved HDI 0.732, ranking eighty-eighth (88) of 188. From 2000 to 2015 Ecuador has climbed 5 positions, which places it in a high human development
Social Development
USD 8,000 millions9,200 km of new highways.Public investment in road network
USD 329 millions Invested between 2007-2015 which include 2 new airports, 10 refurbished, with air navigation systems optimization at airports nationwide.
USD 1,245 millionsPublic investment in 6 multipurpose water projects
USD 5,900 millionsIn hydroelectrical plants investment until 2015In 2017 is expected to have 8768 MW installed capacity
* S
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e: C
oord
inat
ing
Min
istry
of P
rodu
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n, E
mpl
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and
Com
petit
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60,000km Of optical fiber cable. ITC development presents a growth rate of 75% compared to 2007.
Strategic and Competitive infrastructure
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anita
tion
- 201
4
1.5$kilowatt per hour
Per liter of diesel
Per cubic meter
Costs of essential services for industries
9¢
32¢
Definition of investment and investor rights in the Organic Code of Production, Trade and Investment
New and productive investment
Productive Investment Art. 13, literal a
Flow of resources to produce goods and services, to expand production capacity and generate employment in the national economy.
New Investment Art. 13, literal b
Flow of resources to increase the capital stock of the economy: through investment in productive assets that extends the future productive capacity, generates a higher level of production of goods and services or generates new jobs.
Essential elements Flow of resources Increase in capital stock in the economy through the acquisition of productive assets Generation of new goods or services / expansion of the productive capacity of existing Generation of new job sources
What is not investment for the purpose of OCPTI?
The change of ownership of productive assets which are already in operation.
The activity which only involves the distribution or marketing, in which there is no production of goods or services.
The granting of credit to acquire productive assets.
OCPTI features
Non discriminatory treatment Domestic and foreign investors have equal conditions for investment.
Legal security
Right to property
Investment contract
Domestic and foreign investors enjoy protection and security.
Right to property is guaranteed and all forms of confiscation are prohibited for domestic and foreign investment.
Contract up to 15 years, renewable once again, by the same original duration.
OCPTI features
Investor rightsArt. 19, Book II
Freedom of production and trade of legal goods and services;
Access to administrative procedures and control measures established by the State;
Freedom of import and export of goods and services except those limits established by the current law;
Free foreign Exchange outflow of regular earnings or profits once fulfilled the corresponding obligations;
Freedom to acquire, transfer or dispose of shares or property rights on investment;
Free access to national financial system and the stock market.
Productive matrix model
Technology and eco-efficiency transverse axis
• Natural and strategicenabling conditions
• Prioritized sectors
• Legal framework:OCPTI and PPP law
• Business ethics
• Employment generation
• Technological transfer
• Added value
• Productive chain
• Increase exports
INVESTMENT
Incentives and benefits for investments
Prioritized investment sectors according to Productive matrix’s change strategy
To generate added Value To substitute imports
Petrochemical
Fresh, frozen and industrialized food
Agroforestry chain and processed products
Tourism
Foreign trade logistics services
Biotechnology and applied software
Pharmaceutical
Metalworking
Renewable Energy
Radios, TVs and mobile phones
Chemical products
Ceramic products Pesticides and agricultural products
Leather footwear
Garments and textiles Soaps, detergents, perfumes and toilet preparations
Home appliances
Basic chemical sustances
Cement products
Main tax and tariff incentives
Income tax• Exoneration for 5 years for new investments in priority sectors and
companies outside major cities (Quito and Guayaquil).• Exoneration for 12 years for basic industries.• Double deduction of annual depreciation expense for 5 years of
investment in new productive assets, to companies outside major cities (Quito and Guayaquil)
• Double deduction of depreciation and amortization expense corresponding to the acquisition of eco-efficient assets
• For Special Economic Development Zones, is reduced from 22% to 17% income tax.
• 10% reduction of income tax rate on the amount of profits reinvested in investments in productive fixed assets.
Taxes on foreign trade • Tariff exemption for imported goods and 0% VAT for imports from companies operating in Special Economic Development Zones.
Investment incentives for the areas affected by the earthquake
Income tax Productive investment: Exoneration for 5 years. Tourism sector: Up to 10 years of exoneration. Financial entities: 2 year exemption and reduction in
the value of the advance on income attributable to loans to affected areas and reduction in the value of the advance income tax 2016, in proportion to the amount of loans granted from 16 April 2016 until 31 December of the same year.
Taxes on foreign trade Tax exemption foreign Exchange outflow and tariffs imports in favor of taxpayers who have suffered an economic involvement in productive assets intended for production processes or service delivery (until May 2017).
Financing incentive The Ministry of Finance, with the resources obtained
through solidarity contributions may pre-cancel investments, invest or transfer such resources for loans granted by financial and non-financial institutions.
Normativa: Ley Orgánica de Solidaridad y de Corresponsabilidad Ciudadana
Stability through Investment Contracts
Subscription of Investment ContractsDescription
• 15 years on tax and tariff incentives applicable to investment project.
• Renewable up once (maximum for 30 years).
Stability
Optional agreements that the businessman can apply to ensure their new and productive investments greater than US $ 1 million and generating new direct jobs, primarily offers
the following incentives:
Tariff reduction
• The signing of the investment contract allows you to request reduction of tariffs for imported capital goods.
• Reducing tariffs may be total or partial.
• Establishes mechanisms for dispute resolution.
• Arbitration may be local and international.
Security
52012
92012-2013
192012-2014
632012-2015
822012-2016
Signed contracts
80% investment with foreign
capital
Subscription of Investment ContractsResults up to date
USD 5.217 millionsand 7.235 direct
jobs
Subscription of Investment ContractsProcess
CONTACT WITH THE INVESTOR- INVESTMENT
PROJECT PRESENTATION
12
3
4
5
6
7
START TIME 30 WORKING DAYS
ACCORDING OCPTI
INVESTOR KIT SENDING WITH THE REQUIREMENTS FOR
THE CONTRACT SIGNING
VERIFICATION OF DOCUMENTS TO BE DELIVERED ON THE
BASIS OF REQUESTED IN THE INVESTOR KIT
OFFICIAL DELIVERY OF MATERIALS REQUESTED
IN INVESTOR KIT
PREPARATION OF A REPORT TO BE
PRESENTED TO CPS
PROJECT APPROVAL BY THE COUNCIL OF THE PRODUCTION
SECTOR
CONTRACT SIGNING
• DRAFT PREPARATION• DRAFT APPROVAL BY
THE INVESTOR
30 DAYS
60 DAYS
External Financing incentives,Financial investment and Dividends
Incentives for External Financing, Financial Investment and Dividends
For external financing operations of financial or non-financial institutions, for a period greater than one year:
• No income tax is retained (interest).
• Free foreign Exchange outflow (5%)
• This includes capital as interest paid.
For investments in fixed deposits and fixed income instruments, period greater than one year:
• No payment of income tax on profits.
• Free foreign Exchange outflow (5%) in transfers abroad.
• This includes capital and financial returns.
For dividend payment abroad (Law on Environmental Development):
• Free foreign Exchange outflow (5%) in transfers abroad.
Special Economic Development Zones
They are delimited areas of the country, identified as a customs destination for new investments transfer activities and disaggregation of technology and innovation, industrial diversification and logistic services
Special Economic Development Zones
ZEDE Eloy AlfaroLocation: ManabíPetrochemical, Industrial and Logistics
ZEDE YachayLocation: ImbaburaTechnology, Logistics and Industrial
ZEDE ELOY ALFARO
ZEDE PosorjaLocation: PosorjaLogistics, Industrial
ZEDE POSORJA
Special Economic Development ZonesIncentives
Incentives for companies located in SEDZ
• 17% rate of the Income Tax
• Exemption from the payment of tariffs on foreign goods entering such areas, for the performance of authorized processes
• 0% rate of VAT on importation of goods intended exclusively for the licensed area or incorporated in one of the processes of productive transformation developed there
• Tax Credit in the VAT paid on the purchase of raw materials, supplies and services from the national territory that are incorporated in the production process.
• The exoneration of the Currency Outflow Tax on imports of goods and services related to their authorized activity
• The exoneration of the Currency Outflow Tax for the payment of external financing operations.
MSMEs Incentives
MSMEs Incentives
TRAINING
• Technical training directed at the research, development and technological innovation.
• Up to 1% of wages and salaries
IMPROVE PRODUCTIVITY AND BUSINESS DEVELOPMENT
• Technical assistance and market analysis of competitiveness; assistive technology process design, product, adaptation and implementation of processes, packaging design, development of specialized software.
• Up to 1% in sales.
PROMOTION
• Travel expenses, lodging and commercial promotion for access to international markets, such as business conferences, participation in international fairs.
• Up to 50% of promotional expenses.
MSMEs, for 5 years will have the right to deduct a 100% additional of expenses related to the following items:
Environmental Incentives
Environmental Incentives
Depreciation and amortization that correspond to the acquisition of machinery, equipment and technologies for the implementation of mechanisms for cleaner production, mechanisms for the generation of renewable energy (solar, wind or similar) or to the reduction of the environmental impact of the productive activity, and to the reduction of greenhouse gas emissions.
Are deductible with the additional 100%:
Art 10.7 LORTI (Art. 24.1 COPCI
Incentives in depressed areas
Incentives for companies which invest in depressed areas
For the calculation of income tax will have an additional 100% deduction of costs for wages, salaries and social benefits by generating new employment in depressed areas for 5 years.
Ej: Cantón Pujilí, Cotopaxi• 16km (15 min) from Latacunga airport• 9.7km (9 min) of the Panamericana Sur• 99 km (1h20m) from Quito
Ej: Cantón Salitre, Guayas• 52 km (55 min) from airport and port of Guayaquil • 38 km (24 min) from Babahoyo and E25 road
Private – Public Partnership PPP Incentives
Private – Public Partnership PPP Definition
Legal Financial SchemeAgreed between a public delegator entity and a private investor (or more) entity for the provision of infrastructure
Supported in ServicesThey differ from traditional public works for the long-term provision of services of general interest.
BalanceThey have adequate risk distribution, and financing can be public, private or mixed.
RemunerationIt may cover through the payment of end users of the service, or through deferred payments during the life cycle of the project by the delegating entity
Private – Public Partnership PPP Type of projects
New work• Construction• Equipment• Operation and maintenance
Existing Public Work• Rehabilitation or improvement,
operation and maintenance• Equipment• Operation and maintenance
Construction and merchandising• Real estate housing projects of social
interest• Urban development works
Research and development• In which the State participates directly
and with private sector attendance• Other qualified as priorities by the
Committee
Private – Public Partnership PPP Prioritized sectors
Provision of goods, works or services in areas of general interest:
Infrastructure Urban DevelopmentReal estate projects
Roadways PortsAirports
Hydropower Alternative energies
Strategic sectors
Utilities: by exception
Private – Public Partnership PPP Advantages
FOR THE STATE FOR PRIVATE• Satisfy service or public work
• Shared risk, risk transfer
• Tax Relief
• Possibility to Access indirectly to funding
• Utilities coverage guarantee at long term
• New investment opportunities now available
• State sponsorship for private investment projects
• Independence in financing and progress in work or operation
• Attractive tax benefits
• Legal security in their contractual relationship
Private – Public Partnership PPP Incentives
• Tax income exemption for 10 years from the first fiscal revenue.
• Free foreign Exchange outflow (5%) on imports, financing and dividend payments.
Taxes
The projects under the PPP model have a tax and tariff treatment similar as if it would be executed by the State
Tariff reduction
• Exemption of tariffs on imports related to the project.
• VAT exemption on imports related to the project.
• Stability on essential aspects of the development of investment and applicable incentives.
• Possibility to turn to national or international arbitration in case of disputes.
Security
Fiscal sustainability
Risk distribution
Value for money
Interests respect and right users
Property rights
Coverage and social inclusion
For the structuring, approval and implementation of public projects under the PPP mode should apply these Principles and Guidelines:
Private – Public Partnership PPP Guidelines established by law
Private – Public Partnership PPP Approval procedure
DELEGATOR ENTITY
DECLARES OF PUBLIC INTEREST THE PROJECT
PREPARES TECHNICAL, LEGAL AND FINANCIAL STUDY
REQUESTS PROJECT APPROVAL AND IMPLEMENTATION OF INCENTIVE
PRE-CONTRACTUAL PHASE
CHECK THE LEGAL, TECHNICAL AND ECONOMIC STUDY AND COMPLIANCE PPP GUIDELINE , AND ISSUES REPORT FOR THE COMMITTEE
APPROVES OR REJECTS THE PROJECT AND LEGAL BENEFITS
CONTRACTUAL PHASE
PPP COMMITTEESECT. TEC. PPP DELEGATOR ENTITY
PRIVATE MANAGER SELECTION PROCESS AND ALLOCATION
SIGNING CONTRACT MANAGEMENT DELEGATE
Additional information
Investor route
Pre investment - Research Support and Technical Assistance
Post Investment
Follow up investmentsSpecialized scheduleSpecialized consultancy• Investor’s Guide• Specialized information• Sectoral profiles
Site visits
Expert advice on the implementation process in the country• Due diligence• Investment contract (optional)• Attention and channeling difficulties
Linking with public and private sector
Guid
ance
and
ass
istan
ce
Advi
sory
/ Im
plem
enta
tion
After
-Car
e
Articulation for the internationalization of business through our institutional services
RUTA DEL INVERSIONISTA
Investment climate promotion• Investment projects• OCPTI• PPP Law• Investment contracts
Matchmaking with local actors
It is the set of services provided to potential investors to facilitate the installation of the project.
What is PRO ECUADOR route FOR THE INVESTOR?
Investor file
Investment promotion tools
http://www.proecuador.gob.ec/wp-content/themes/proecuador/cambios2014/descargas/GuiaInversionista2016-min.pdf
Project catalog:
Investor’s Guide:
https://www.dropbox.com/sh/bcy4h03qzrigh72/AACRe-2T-GBMty6plVf7Pckza?dl=0
Investor’s form:
Investor’s kit:
PPP Law:
https://www.dropbox.com/sh/hy1b0xffe3e7n3k/AAB0tJrKrh-dt3r_LcG8iYJsa?dl=0
https://www.dropbox.com/sh/lptbu2072lbs96i/AADTdnXT5zzmf8YUSS6hwQrIa?dl=0
https://www.dropbox.com/sh/esrk68fn1d3rknf/AAAIwILYv7UrB1yFKM6qEdv_a?dl=0
Strategic sectors
Coordinator of Strategic Sectors Ministry focuses on management for rational, sustainable and efficient exploitation of mining, hydrocarbons and water resources, and the effective provision of public telecommunications services and electricity; generating maximum social benefit and economic impact with minimal environmental involvement, aimed at guaranteeing the rights of the population.
BASIC INDUSTRIES
MININGOIL
BIOENERGY2 ProjectsUSD 1.155 MM
ELECTRICITY AND RENEWABLE ENERGY
WATER RESOURCES TELECOMMUNICATIONS
Investment intentions notification procedure for Strategic sectors
Company
Intention letter- offer + NDA
Sectorial Ministry and/or MICSE
Proposal evaluation + analysis responsibilitySectorial Coordinator
Ministry
Optional: commitments instruments sign: MOU,
termsheet, othersCompany + Sectorial
Ministry and/or Coordinator Ministry
NegotiationCompany + Sectorial
Ministry and/or Coordinator Ministry
Sign contractCompany + public party