July 2020 Regulatory Update: South and Central America

Biz Latin Hub specialists in Peru
Our professionals report notable regulatory updates for July 2020.

Biz Latin Hub’s team of legal and accounting specialists operating across all key markets in Latin America report the following notable regulatory updates for July 2020 in Bolivia, Brazil, Chile, Costa Rica, Guatemala, Mexico, Panama, Paraguay, and Uruguay.

We support foreign companies in Latin America comply with all corporate regulatory compliance obligations to ensure their success in new markets.

For more information on how we can support your regulatory and annual compliance needs, contact us today.

Bolivia

RegulationDetails
Official Statement N° 37/2020   On 14 July, the Ministry of Labor announced that daily labor activities in private and public entities can last for up to 6 hours. Companies must alternate staff between working in their designated office and home-office working arrangements.

Brazil

RegulationDetails
Ordinance 340Prohibition of entry of foreigners in Brazil from 1-30 July.   

Exceptions:
1. Immigrant with permanent residence;
2. Foreign professional on mission in the service of an international organization, as long as duly identified;
3. Passenger in international transit, as long as the passenger does not leave the international area of the airport and the country of destination admits his ticket;
4. Foreign employee accredited to the Brazilian Government;
5. Foreign national, spouse, son, daughter, father, mother or curator of a Brazilian; whose entry is specifically authorized by the Brazilian Government in view of the public interest or for humanitarian reasons; and bearer of the National Migration Registry; and 6. Cargo transportation.  

Chile

RegulationDetails
Framework for the Emergency Plan for the Protection of Family Income and Economic and Job Reactivation  Spanish: Marco de Entendimiento para Plan de Emergencia por la Protección de los ingresos de las familias y la Reactivación económica y del Empleo  

A new Fiscal Line of Credit was created to fund the hiring of new full-time employees. The Credit will offset Corporate Taxes and it will reach an estimate 23% of each employee’s gross salary.  

VAT surpluses will be paid back to Pro-Pyme Taxpayers that can provide proof of good taxation behavior.  

PPM Payments (Monthly Provisions regarding Income Taxes) will be suspended until September 2020.  

The Instant depreciation scheme will be extended until December 31st, 2020. Investment projects will be exempt from the regional contribution tax during 2021 (Tax rate: 1%).

Costa Rica

RegulationDetails
Airports openingFrom 1 August, Costa Rican airports will be open to flights from Canada, UK and Europe.

Guatemala

RegulationDetails
Ministerial Decree No. 250-2020On 9 July, the Ministry of Labor announced authorized employers without the means to pay the Annual Supplementary Salary (Bono 14) to file an online request, to be dispensed from payment.   View the list of supporting documents needed to file this request.

Mexico

RegulationDetails
New Federal Law for the Protection of Industrial PropertyOn 1 July, the Mexican Official Gazette announced new trademark and patent regulations that will come into force in the first half of November.  

The main changes to existing IP legislation are:
1. Promotion of IMPI digital services (electronic procedures)
2. New concepts and regulations regarding patents, industrial designs and industrial secrets
3. New penalties for the case of law violations.

Panama

RegulationDetails
Modification of the Income tax law (Executive Decree N° 170 of 1993) through the Executive Decree N° 354On 9 July, the Panamanian government declared the following activities exempt from income tax:   

1. Invoicing of legal entities not established in Panama for merchandise consigned by a logistics operator in some free zone of Panama  
2. Income derived from international transport managed through logistics operations for goods or products that arrive in Panama consigned by a logistics operator located in a free zone of Panama   In both cases, the merchandise received in Panama must be re-exported.  

Paraguay

RegulationDetails
DGM Resolution No. 311The General Directorate of Migrations announced that foreign nationals outside of national territory may initiate procedures for permanent and temporary settlement under the regime of legal representation.

Through this regulation, candidates to settle in Paraguay do not need to present themselves to the country to initiate the required procedures, until the end of the sanitary restrictions, being able to enter the country up to six months after the admission of his file.

Uruguay

RegulationDetails
Decree No. 003228/2020/445987The incorporation for SAS is more flexible: required documentation includes certified and apostilled documents for the constitution only.

Countries with no reported updates

Argentina, Colombia, Ecuador, El Salvador, Peru report no significant changes to regulations in July 2020 that would impact business.

Work with trusted legal and accounting experts to adapt to regulatory changes

At Biz Latin Hub, we enable companies to expand into and operate throughout Latin America during challenging and turbulent regulatory periods. We ensure regulatory compliance every step of the way to protect your business.

Contact our team to understand how we can help you comply with new or changing regulations with our full suite of multilingual market entry and back office services, including:

  • Local and international tax advisory services
  • Accounting and taxation
  • Company formation
  • Hiring and Professional Employer Organization (PEO) services
  • Visa processing
  • Due diligence
  • Legal services, including legal representation, trademarks and liquidation
  • Commercial representation.

Learn more about our team of professionals supporting businesses expand across Latin America.

Infographic: Biz Latin Hub services, including regulatory compliance in Latin America

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