The law, designed to collect 200 million dollars of revenue annually, repeals ten previous laws and aims to incentivise higher domestic production by making various changes to Ecuador's tax system.

Among other aspects, the reform affects Excise Taxes on Special Goods such as cigarettes and alcoholic beverages, including beer. Similarly, the law includes tax incentives to change the country's energy matrix and reduce consumption of imported fuels.

The reform eliminates a tax break that gave companies an income tax deduction for expenditures for advertising of “highly processed foods”—i.e., those that increase the risk of obesity, such as soft drinks, candy and snacks—commonly referred to as junk food—which have little or no nutritional value, contain high levels of additives, and do not contribute to overall health.

The law also includes incentives for the small-and medium-sized enterprise sector, and companies in the social and solidarity economy. In terms of tax fraud, the law includes mechanisms to prevent tax fraud and strengthen the tax system.

In the process of preparing this reform, the EUROsociAL II programme of the European Union supported an experience exchange from 9th to 11th December 2014 between Chile and Ecuador due to the interest of the Ecuadoran government in gaining in-depth knowledge of the tax reform carried out in Chile in 2014. Ecuador was especially interested in the special taxes and tax incentives implemented in Chile to encourage investment and production.

The activity took place in Santiago, Chile, and included the participation of the Deputy Secretary of Planning and Sectoral and Intersectoral Planning of Ecuador's Ministry for Coordination of Economic Policy, the National Director of Revenue of the Ecuadoran Ministry of Finance, analysts from both ministries, as well as the Deputy Assistant Director of the Studies Division of Spain's Institute for Tax Studies. On the Chilean side, senior officials of the country's Ministry of Finance participated.

This activity is part of the Budget-Plan Link action of the Public Finance area of the European Union's EUROsociAL Programme, which is being coordinated by the FIIAPP with the Spanish Institute for Tax Studies as its operational partner.