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.
Multiple countries: Argentina, Chile, and Colombia
The OECD has requested input on upcoming reviews that will cover Argentina, Chile, and Colombia, among other countries.
The incentives aim to support technological development, innovation, environmental protection and quality in the automotive industry.
The bill also would introduce tax on certain digital services and a definition of permanent establishment, and would modify Chile’s definition of preferential tax regime, among other changes.
A ruling addresses various questions raised by taxpayers on the CFC regime introduced as part of the 2017 tax reform.
A free web service has been launched to facilitate the issuance of e-invoices for taxpayers that will be required to submit e-invoices under the new rules.
The customs union established by Guatemala and Honduras aims to optimize the region’s competitiveness and cross-border trade, through the free movement of people and goods between member countries, harmonization of tariffs and simplification of customs formalities.
Mexico and the US recently arrived at a preliminary agreement on the renegotiation of the North American Free Trade Agreement. As of 28 August 2018, the negotiations did not include Canada, as there are some pending issues to be resolved, but an agreement between all three countries is expected to conclude in the coming days.
Changes to the law introduce the concept of a “customs agency,” formalize the duties of the Ministry of Finance and Public Credit and introduce paperless customs clearance.
The National Council for Science and Technology has invited taxpayers to apply for cash grants under the R&D and innovation incentives program for 2019 that provides grants equal to a certain percentage of qualifying expenses.
The transfer pricing rules will apply to transactions with entities resident in uncooperative territories, as well as to transactions with related parties or with entities resident in tax haven jurisdictions.
The guidance clarifies which taxpayers are subject to the reporting requirements and the applicable due dates.
New rules that require companies to report on the identity of their beneficial owners aim to prevent tax evasion, money laundering and the financing of terrorism and to allow Peru to comply with its obligations regarding mutual administrative assistance in tax matters.
Peruvian taxpayers will not be able to deduct certain payments to nonresident entities if tax has not been withheld on the payments.