Manya Orellana, Marlon VicenteGonzález Rabanal, Miryam de la Concepción2024-05-202024-05-202022https://hdl.handle.net/20.500.14468/11861This article analyzes the effects of the international economic double taxation of dividends. For this purpose, a conceptual distinction is made between legal and economic double taxation. The term “dividends” is defined and possible tactics that could be adopted when drafting double taxation agreements in order to resolve any potential issues, with specific reference to the case of Ecuador, are discussed. It was necessary to conduct a thorough review of the doctrine and a comprehensive analysis of possible methods by which international economic double taxation could be avoided or corrected. The paper includes a study of the 1993 double taxation agreement between Ecuador and Spain, and a simulation exercise in which the effects of the agreement’s application are determined. We find that that the existence of international economic double taxation affects businesses’ management policies, indebtedness, and location decisions, as they often look to invest in jurisdictions with lower levels of taxation. Moreover, it affects the evolution of foreign investments and, therefore, the development capacity of countries, especially the least developed ones.eninfo:eu-repo/semantics/openAccessjournal articleDividendsDouble Taxation Conventions (DTCs)Economic Double TaxationBusiness Taxation