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
Input requested on sixth round of peer reviews on tax dispute resolution
The OECD has requested input on upcoming reviews that will cover Argentina, Chile, and Colombia, among other countries.
New tax incentives introduced for automotive sector
The incentives aim to support technological development, innovation, environmental protection and quality in the automotive industry.
Chilean tax reform bill would introduce new integrated corporate tax regime
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.
CFC regime clarified
A ruling addresses various questions raised by taxpayers on the CFC regime introduced as part of the 2017 tax reform.
Tax authorities launch free web service for issuance of e-invoices
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.
Implications of joining Central American Customs Union
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.
NAFTA renegotiation between Mexico and the US
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.
Customs law amended
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.
Applications invited for 2019 R&D and innovation incentives program
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.
New decree introduces concept of uncooperative territory
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.
Master file and CbC reporting requirements clarified
The guidance clarifies which taxpayers are subject to the reporting requirements and the applicable due dates.
Legal entities required to identify beneficial owners
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.
Changes made to deductibility of certain payments to nonresidents
Peruvian taxpayers will not be able to deduct certain payments to nonresident entities if tax has not been withheld on the payments.
For more information, please contact Americas Tax & Legal.
Note: Latin America in Focus is not intended to be an inclusive update for all Latin America countries, but rather features key developments in the countries covered.