Overview
The Business Permit Tax (Patente Municipal) is one of the key municipal taxes assessed by municipalities in Ecuador.
This annual tax applies to individuals and companies engaged in economic activities within a municipality. Whether you run a small shop, a consulting firm, or a larger enterprise, the local government requires you to register and pay this tax.
How is the Tax Calculated?
The Business Permit Tax is based on the equity of your business:
- Minimum amount: USD 10 per year
- Maximum amount: USD 25,000 per year
The specific rate depends on your business's financial position. Smaller businesses pay less than larger companies.
Most municipalities give discounts on this tax when you pay at the beginning of the year.