Ecuador plans tax incentive to entice foreign acts

Concert organisers in Ecuador hope to attract more international acts through a 10% tax reduction applied via the country’s new Tourism Law.

South American promoter CKConcerts believes the revised regulations will enable it to take advantage of a lower tax withholding of 15%, compared to the previous 25%, when paying foreign artists who perform in Ecuador.

CKConcerts manager Cristian Sosa, who has worked on recent shows in Ecuador by acts such as Laura Pausini, Il Divo, Julieta Venegas and Los Fabulosos Cadillacs, tells El Universo a 10% reduction in taxes “is super good and can encourage more and bigger shows”.

The firm is bringing Swedish metal band Amon Amarth to El Teferico in the capital Quito on 24 October, and Sosa notes that, at present, around $30,000 of his $150,000 budget for the show would be allocated for taxes, but that amount would be reduced to $20,000 under the new rules. Tickets cost $47 (€43) or $77 (€71) VIP.

Dfabis Producciones owner Fabián Vallejo agrees the potential tax reduction would be a “great attraction for event producers”

Despite the Tourism Law being drawn up in March, Sosa says he has thus far been unable to access the lower rate due to a lack of clarity with the authorities. However, he is now hopeful of a breakthrough after the rules were published in the Official Registry last week.

Dfabis Producciones owner Fabián Vallejo agrees the potential tax reduction would be a “great attraction for event producers”, but adds that clear rules must be in place as there are local regulations to consider in each city.

Ecuador witnessed its biggest rock gig in almost three decades last year when Roger Waters performed at the 40,000-cap Estadio Olímpico Atahualpa in Quito on 9 December 2023, presented by Move Concerts, DG Medios and Sight Concerts.

The event, which served as the finale of the Pink Floyd co-founder’s 2022/23 This Is Not a Drill Tour, was the South American nation’s biggest rock show since Bon Jovi played the venue in 1995.

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