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.
The prime minister has reaffirmed the government’s commitment to removing preferential tax regimes that cause ring-fencing of the international business sector and, as from 1 January 2019, international business companies and international societies with restricted liability will become regular Barbados companies.
The tax authorities have initiated the exchange of country-by-country reports with other jurisdictions.
New guidance extends access to the MAP to taxpayers whose disputes have been subject to a court decision.
The tax authorities have issued guidance on the MFN clauses in four tax treaties following agreement to the revised wording for the relevant articles from the relevant treaty partner tax administrations.
The Colombian tax authorities have published guidance for taxpayers to submit a country-by-country report for fiscal year 2017, as well as the information to be included in the report.
The finance bill includes a gradual reduction in the corporate income tax rate and a reduction in the VAT rate.
In addition to the introduction of a VAT regime, the law includes a 15% capital gains tax and a 15% tax on movable capital and a tax amnesty.
Companies that are taxed under the general tax regime and that are approaching their fiscal year-end should review their tax credit options.
A member of Morena’s parliamentary group has proposed the introduction of a law that would grant tax and administrative benefits/incentives with fewer formalities.
The congress has presented several more proposed changes to the tax code, income tax, VAT and excise tax laws.
Tax and non-tax changes have been made to the multinational headquarters regime, including the introduction of a 5% tax on incentivized activities that previously were tax-exempt. The tax changes will bring the regime in line with the recommendations under action 5 of the OECD/G20 BEPS project.
Peruvian subsidiaries of foreign multinational entity groups have until March 2019 to file the CbC report if the multinational’s parent company is required to file a CbC report in its country of residence.