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.
Barbados
IBC and ISRL regimes to be abolished and no new licenses to be granted
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.
Brazil
Exchange of CbC reports initiated
The tax authorities have initiated the exchange of country-by-country reports with other jurisdictions.
Access to mutual agreement procedure expanded
New guidance extends access to the MAP to taxpayers whose disputes have been subject to a court decision.
Chile
MFN clause applies in Chile’s tax treaties with Austria, China, Ecuador and Spain
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.
Colombia
Guidance issued on procedure for filing CbC report
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.
2019 finance bill proposes significant tax reforms
The finance bill includes a gradual reduction in the corporate income tax rate and a reduction in the VAT rate.
Costa Rica
New law makes broad changes to corporate tax rules, introduces VAT
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.
Ecuador
Certain financial reporting obligations abolished
Certain forms are no longer necessary because the information can be obtained from other sources.
El Salvador
Companies receive Authorized Economic Operator status
Two companies have been certified under the Authorized Economic Operator Program.
Mexico
Proposal announced for law to promote public trust
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.
More tax reform proposals released
The congress has presented several more proposed changes to the tax code, income tax, VAT and excise tax laws.
Panama
Multinational headquarters regime amended in line with BEPS action 5
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.
Peru
Due date extended for filing CbC report for FY 2017
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.
Contact us
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.
