The principle of fairness in the taxation of foreign legal entities (Review).

Abstract

This research is focused on analyzing the taxation model of foreign legal entities in Ecuador and thus, achieve equity with national legal entities. This path starts from the current regulations in the country and is compared with international treaties and conventions related to the treatment received by this productive group in order to recognize its effect on the economy and the investment that can be attracted. In addition, the topic of the tax system and equity in society and as a set of rules established for an efficient collection and, above all, redistribution of wealth in order to achieve the common good is addressed. Finally, from a qualitative approach, the article covers the principles necessary for both domestic and foreign equity. This is achieved by studying Ecuador's current regulations, and at the same time, analyzing the effectiveness of the incentives that can attract international trade without leaving aside the principles that constitute the foundations of the Ecuadorian tax system, in order to recommend the necessary reforms to find the necessary balance.