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.
Table of Contents
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.
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