The Business Year

Freddy Cevallos

ECUADOR - Economy

Freddy Cevallos

Managing Partner, UHY Assurance & Services

Bio

Freddy Cevallos holds an MBA from the University Francisco de Vitoria Madrid Spain, an MBA from the University of Catalonia, Spain, an MSc from Université Suisse de Management. He is accredited in project management and is a commercial engineer who graduated from Pontificia Universidad Católica del Ecuador. He also holds a Diploma in NIIFS from Tecnológico de Monterrey, Quito campus. He has developed his professional experience over 20 years as a financial manager with Ecuador Bottling Company and an audit manager and tax consultant in international firms such as Deloitte, KPMG, EY, and Grant Thornton. He has been part of the valuation team of Salomon Smith Barney and is currently Managing Partner of UHY Assurance & Services.

Part of a global network of independent audit, accounting, tax, and consulting firms, UHY Assurance & Services is keen to provide firms in Ecuador with professional services of high quality.

How do you rate the implementation of the current tax changes and pro-business measures, and what impact does it have on the accounting activity of companies?

The last tax reform was sent by the executive to the National Assembly and seeks to generate USD1.9 million in revenue. The previous government’s commitment to the IMF was approximately USD1.3 million, and the tax reform sought to capture an additional USD600 million. This means that Ecuador is on the right track to restore its fiscal balance and overall stability. Ecuador can succeed, and we owe it to our children and the future generations to become the best investment country in Latin America. We will stand with foreign investors on Latin America with a clear advantage, which is our dollarized economy. For example, the Colombian peso at the moment is 4,000 to the dollar. As an investor, you have to consider the challenges with devaluation between Peru, Colombia, and Argentina. If I invest USD1 million in Ecuador, there will be taxes, but there will not be any losses due to devaluation. The main tax having a negative impact on investments is the Tax on Foreign Exchange Outflows (ISD), which the government is already reducing and is committed to eliminating.

How are you helping companies, especially foreign companies, come to Ecuador and do business in the country?

What we are doing is demonstrating that Ecuador is an attractive and safe country for investment. There are several advantages to investing in the country, one of which is the issue of legal certainty that the country is building, especially now if we make a comparison at the regional level. We want to be able to present to potential investors all these benefits. For our clients, we are always working to identify the advantages of these strictly based on what the law provides, ensuring there is tax optimization. We represent UHY International, a network of independent audit, accounting, tax, and consulting firms with 330 offices in 100 countries worldwide. We are more than 8,500 professionals who are proud to belong to UHY. UHY Ecuador has had a great growth, positioning it as one of the most recognized firms in the Ecuadorian market. We have more than 100 highly qualified professionals with extensive experience, and we currently have the confidence of about 250 clients nationwide in different areas and economic sectors of the country.

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