Contecon Guayaquil S.A. (CGSA). International Container Terminal Services (ICTSI) subsidiary in Ecuador has introduced a plan to establish a special economic zone at the Port of Guayaquil. The Special Economic Development Zone (ZEDE) project aims to strengthen the competitiveness of Ecuador’s exports.
To develop business practices, ZEDE will offer tax incentives that comprise income tax exemption for the first ten years of the project establishment and reduce 10 points from the tax rate after ten years. Along with this, ZEDE also pledges to offer tax exemption from Foreign Exchange Exit Tax for up to 20 years; exemption from Foreign Trade Taxes for a similar period, along with Value Added Tax credit on purchase from the local market. The firm also offers benefits from sectional fees and taxes.
The ZEDE will be located adjacent to Port of Guayaquil and will offer a stable regulatory framework of Ecuadorian legislation for the enhancement and high investments. Amidst this framework, the project will add value to the supply chain and impart State and business operators a competitive area for their activities as preferred by the legal authorities.
Talking about the plan, Jose Antonio Contreras, CGSA General Manager, explained that ZEDE Contecon Guayaquil S.A. has a supreme location next to the Guayaquil Maritime Port has a clear and stable regulatory framework that will allow the development of long-term monetary planning and prioritize sectors of Ecuadorian economy.