Latin America in Focus
Staying ahead of cross-border operations
Latin America's emergence as a world market has been, and continues to be, accompanied by an upsurge in the complexity of laws, regulations, and practices impacting cross-border operations throughout the region.
Latin America in Focus shares the latest developments with consequences for the region's tax, legal, and overall business environment—developments that businesses and individuals with investments in Latin America cannot afford to ignore.
Click on any of the headings below to read more about the topic.
In this issue
The tax authorities of the city of São Paulo published a binding interpretative opinion on 19 July 2017 that clarifies the levy of municipal services tax on software licenses and assignments of software rights.
The Federal Court of Appeals has ruled that payments made under a procurement services agreement that did not involve a transfer of technology, are not considered royalties that are subject to withholding tax under the Brazil-Belgium tax treaty.
The tax authorities have issued additional guidance on the “Special Tax Regularization Program,” specifically on the settlement of federal tax debts.
The agreement will allow the sharing of information on money laundering, terrorist financing, and other criminal activities.
The Tax and Customs Administration has clarified that supplies of digital services by nonresident companies to recipients located in Colombia are subject to Colombian VAT as from 1 January 2017.
A recently introduced rule limits the application of the lower 4.9% and 10% withholding tax rates to interest payments that are deductible for the Mexican resident payer under the domestic provisions related to the OECD BEPS project.
The tax authorities have published the final rules regulating the contents and filing of the master file, local file and CbC report.
The tax authorities have published guidance to remind taxpayers that, effective 1 January 2017, it is no longer necessary to file a transfer pricing information return and a technical report.
Other topics of interest
Governments in Latin America are choosing different ways to apply indirect taxes to digital services. This regional diversity and complexity requires a watchful eye on developments.
Latin America regulators lead the way in deploying innovative technologies, prompting business to follow suit.
The 2017 guide has been revised to include several country-specific regulatory and enforcement changes and advancements impacting related party customs valuation.