The legal and accounting teams at Biz Latin Hub’s offices in Bolivia, Chile, Panama, and Peru report the following regulatory updates for December 2020 that could affect your business interests.
At Biz Latin Hub our multilingual teams based throughout Latin America and the Caribbean offer legal, accounting, and back-office support to foreign companies operating in or looking to enter the region.
If you would like to learn more about how we can help you build your business, contact us today.
Table of Contents
Bolivia
The Bolivian government and its institutions introduced four notable regulatory update in December:
| Regulatory activity | Outcomes for business |
| Decree Supreme N°4422 Published: Dec 18, 2020 | Determines an Extraordinary Regime of Administrative Regularization of Employers and companies obligations in the private sector, in order to promote the generation of employment . |
| Decree Supreme N°4424 Published: Dec 21, 2020 | Authorizes the Ministry of Productive Development and Plural Economy, the constitution of two (2) Trusts for the Reactivation and Development of the National Industry. |
| Decree Supreme N°4430 Published: Dec 25, 2020 | Establishes bio-security standards and measures to prevent the entry of the new strain of COVID-19 into Bolivia from December 25, 2020, to January 8, 2021. |
| Law N°1357 Published: Dec 28, 2020 | Tax on Great Fortunes, which will be applied to the fortune of natural persons from 2020. Public companies, commercial companies, cooperative companies, joint stock companies and any other legal person are excluded from this Tax. |
Chile
The Chilean government and its institutions introduced two notable regulatory updates in December:
| Regulatory activity | Outcomes for business |
| Law 21.288 Published: 14 Dec, 2020 | Creates the transitory COVID-19 Emergency Fund |
| Law 21.298 Published: 23 Dec, 2020 | Modifies the Constitution in order to reserve seats for representatives of indigenous communities in the upcoming Constitutional Convention.. |
Panama
The Panamanian government and its institutions introduced two notable regulatory updates in December.
| Regulatory activity | Outcomes for business |
New type of entity established | The government has sanction the creation of a new entity known as an “Entrepreneurship Society” (Sociedad de Emprendimiento) with the objective of supporting the investment of small businesses by granting tax incentives and fast corporation registry This corporation must be incorporated by two to five persons that have residence in Panama and the annual gross income cannot surpass USD 1 million. |
| Decree N° 1686 Published: 28 Dec, 2020 | This decree establishes new mandatory lockdown between January 4 and January 14, 2020, to avoid the spread of the COVID-19 virus. |
Peru
The Peruvian government and its institutions introduced one notable regulatory update in December.
| Regulatory activity | Outcomes for business |
| Law N°31087 Published: 05 Dec, 2020 | Repeals the Law N° 27360 which approved rules for the promotion of the agricultural sector. (A new Law of Agricultural Promotion has been recently approved by Congress, but it is still pending the official publication by the Government). |
Contact our corporate legal team to discuss how Biz Latin Hub can support you
At Biz Latin Hub, our multilingual accounting and legal professionals are able to offer expert support to foreign businesses throughout Latin America and the Caribbean. With our comprehensive portfolio of company incorporation and back-office services, our clients do business safely in the knowledge they are fully compliant with current legislation and regulatory requirements.
Contact us now to learn more about how we can help you comply with the regulatory environment in Latin America and the Caribbean.
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