Regulatory Update: 7 LatAm Offices Report Changes in November 2021

The legal and accounting teams at Biz Latin Hub’s offices in Bolivia, Brazil, Colombia, the Dominican Republic, Ecuador, El Salvador, and Mexico reported the following regulatory updates in November 2021 that could affect your business interests.

At Biz Latin Hub our multilingual teams of corporate support specialists based throughout Latin America and the Caribbean offer tailored packages of integrated back-office services, including legal, accounting, recruitment, and other services to assist companies and investors doing business in the region.

If you would like to learn more about how we can help you reach your commercial goals, contact us today.

Bolivia

The Bolivian government and its institutions introduced three notable regulatory updates in November:

Regulatory activity Outcomes for business
Decree Supreme N°4616

Published: November 10th
Establishes conditions for the application  investments’ incentives in Hydrocarbon Exploration and Exploitation.
Law 1407

Published: November 10th
Economic and Social Development Plan 2021-2025
Law 1409

Published: November 14th
Abrogates Law No. 1386 of August 16th, 2021, “Law of National Strategy to Combat the Legitimation of Illicit Profits and the Financing of Terrorism”

Brazil

The Brazilian government and its institutions introduced one notable regulatory update in November:

Regulatory activity Outcomes for business
Federal Decree 10.854 /2021

Published: November 10th, 2021
Regulates provisions related to labor legislation, including outsourcing of employees, 13th salary, among other provisions.

Colombia

The Colombian government and its institutions introduced two notable regulatory updates recently:

Regulatory activity Outcomes for business
Law 2157

Published: October 29th, 2021
Regulates general provisions of Habeas Data with regard to financial, credit, commercial, services and information from third countries.
Decree 1399

Published: October 29th, 2021
Regulates the tax incentive for the creation of new employment.

Dominican Republic

The Dominican Republic government and its institutions introduced one notable regulatory update recently:

Regulatory activity Outcomes for business

Law 338-21

Published: November 4th, 2021
Law 338-21 modifies Law 189-11 for the Development of the Mortgage Market and Trusts, establishing that trusts that are established for the construction of low-income homes will not be subject to corporate income tax, capital gains tax, property tax, property transfer tax and/or other taxes and fees related to construction activity.

Ecuador

The Ecuadorian government and its institutions introduced one notable regulatory update in November:

Regulatory activity Outcomes for business
Organic law for
economic development
and fiscal sustainability
after the COVID-19 pandemic


Published: November 29th, 2021
Important reforms in tax matters for the year 2022.
Elimination and reform of various taxes.

El Salvador

The government of El Salvador and its institutions introduced one notable update in November:

Regulatory activity Outcomes for business
Foreign Affairs Committee issues favorable opinion on Foreign Agents Law

Published: November 16th, 2021
Congress proposed the Law on Foreign Agents in El Salvador: law would oblige any person or organization in El Salvador that carries out activities “that respond to interests, are controlled or financed, directly or indirectly by a foreigner” to register as “foreign agents”. Failure to do so could result in the government shutting down the organization. In addition, registered foreign agents would be prohibited from carrying out activities for political purposes under the pretext that they could jeopardize the stability of the country.

Mexico

The Mexican government and its institutions introduced four notable regulatory updates in November:

Regulatory activity Outcomes for business
Federal Income Law for fiscal year 2022

Published: November 12, 2021
The Mexican government estimates that it will generate higher revenues by 12.59% compared to 2021, which means the application of more aggressive tax compliance inspection processes, in addition to other income-generating mechanisms.
Reforms, additions and repeals to the Income Tax Law (LISR, in Spanish)

Published: November 10th
The previous “Tax Incorporation Regime” is eliminated and replaced with the so-called “Trust Regime” for the fulfillment of tax obligations.

Some rules applicable to personal deductions are eliminated and modified, for example, situations related to onerous donations.

New rules applicable to legal representatives of foreign persons are incorporated into the Law, where it will be necessary to have supporting documentation related to the payment of taxes on behalf of the principal, for 5 years from the day following the day on which they were made. Once the declaration has been submitted, voluntarily assume joint and several liability, which will not exceed the contributions that the foreign principal must pay and have sufficient assets to respond as joint obligor.
Reforms, additions and repeals to the VAT Law (LIVA in Spanish)

Published: November 12, 2021
The 0% VAT rate will now be applicable to both human food and animal feed products.
Precepts are added to define the concept of “not subject to tax”.
Reforms, additions and repeals to the Federation Tax Code (CFF in Spanish)

Published: November 12, 2021
Some rules for issuing “Digital Tax Receipts” (Digital Invoices) are modified for both the issuer and the recipient.
Some rules of the inspection processes of the tax authorities are also modified.

Biz Latin Hub can support you doing business in Latin America

At Biz Latin Hub, our multilingual company formation, recruitment, accounting, and legal professionals are ready to support you doing business in Latin America and the Caribbean. Our full suite of market entry and back-office services leaves our clients safe in the knowledge they have all commercial bases covered and 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.

Learn more about the teams of professionals we have enabling commercial expansion across Latin America.

Key services offered by BLH including legal services, accounting & taxation, hiring & PEO, due diligence, tax advisory, and visa processing
Key services offered by Biz Latin Hub

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