Accounting- Tag Archives - Business News and Updates

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Changes to Bolivia’s Tax System During COVID-19 Response

by Accounting Team Bolivia | Jun 4, 2020

Understand key changes to Bolivia's tax system during the government's response to COVID-19. Importantly, deadlines for filing certain key corporate compliance documents have been deferred. Temporary measures aim to support businesses facing challenges with cash flows or having problems reporting their monthly and annual obligations In order to confront the consequences of the government's response to the COVID-19 outbreak, these temporary measures aim to support companies, small businesses and individuals facing difficult times with their cash flows or having problems reporting their monthly and annual obligations at the country's Tax Office (Servicio de Impuestos Nacionales). Find out these new deadlines and how your business may be impacted by these measures, and seek expert local accounting guidance to get support for your business during this time. Deadlines deferred in Bolivia’s tax system The government has announced a number of changes to Bolivia’s tax system to help the taxpayers affected by quarantine regulations in the country. Key relevant changes for businesses to take note revolve around tax declarations. The government has set the following deferred deadlines for tax declarations in Bolivia: Taxes and other obligationsRegular date for declarationNew date for declarationValue Added Tax (VAT)February-May 2020July 2020Transfer TaxFebruary-May 2020July 2020Income Tax Fiscal year 201929 April 2020 For taxpayers with fiscal year ending on 31 December 201929 May 2020 for Great and Main Contributors (GRACO and PRICO).31 July 2020 for taxpayers catalogued as...

New Legal Entity in Paraguay: Simplified Shares Company (EAS)

by Legal Team Paraguay | May 30, 2020

Find out about the new legal entity in Paraguay - the EAS, or Simplified Shares Company - and what this entity can offer business owners entering the market. The EAS in Paraguay was established through Law No. 6480/2020 and is an excellent tool for business development in Paraguay. Paraguay is one of the most underrated jurisdictions in Latin America for doing business. The country has demonstrated astonishing annual rates of economic growth, averaging around 4% between 2015-2017 and increasingly diversifying market opportunities, including blossoming agricultural, service and mining sectors. Although it is enticing, it can be difficult to do business in a country where one does not fully understand local law and regulations. With the purpose of encouraging entrepreneurs to enter the market, and reduce bureaucracy, the Paraguayan government has encouraged simplification in the creation of legal entities. Recently, Paraguay introduced the Empresa por Acciones Simplificadas (EAS), otherwise known as a Simplified Shares Company entity for business. While the law establishig this entity has yet to fully enter into force, this move to open the business environment in Paraguay is promising for foreign executives looking to expand into the country. 6 key characteristics of the Simplified Shares Company (EAS) in Paraguay The Empresas por Acciones Simplificadas (EAS) in Paraguay was established through Law No. 6480/2020 and is an excellent tool for business development in Paraguay. As a Simplified Shares Company, the entity’s main characteristics and innovations to benefit...

May 2020 Regulatory Update: Bolivia, Colombia, Costa Rica, Panama, Paraguay

by Team Latin America | May 28, 2020

Our senior legal and accounting experts deliver monthly updates on regulatory and other changes in their respective countries in Latin America. Find out regulatory changes occurring across Latin America that may impact you and your business. Extension for Registry of Commerce renewal in Bolivia Bolivia's response to the COVID-19 includes an extension of the deadline for commercial renewal with the Registry of Commerce. In Bolivia, the government’s response to the COVID-19 pandemic has included an extension of the typical deadlines for companies to provide certain documents to government agencies out to 29 May. These documents include: Annual Financial Statements,the company’s Annual Report 2019, andIncome Tax Declaration. As such, the deadline for commercial renewal with the Registry of Commerce (Registro de Comercio) will be rescheduled. The official due date is pending confirmation from government officials. Colombia reduces contributions from employees and employers In Colombia, Decree 558 of 2020 reduced the required pension contributions from employers and employees in order to increase business cash flow and disposable income for individuals. This is part of Colombia’s overall initiative to prevent mass job loss. These pension contributions are reduced from 16% to 3% - 2.5% from employers and 0.5% from employees). Other Decrees and Circulars announced by Colombia during their COVID-19 Pandemic response include: Circular 021: outlines options for flexible working arrangements, and options to take vacations in advance to avoid further layoffs.Circular 022: confirms...

Changes to Accounting Obligations in Ecuador During COVID-19

by Accounting Team Ecuador | May 22, 2020

Learn how Ecuador has modified some of its accounting obligations for companies due to the current situation and economic uncertainty facing the country. Ecuador, like many other countries, has been affected economically, politically and socially by COVID-19. However, despite the current situation and existing restrictions, companies operating in the country have continued their commercial activities and must comply with the accounting obligations established by the government. The Ecuadorian government has taken a series of measures and issued important resolutions on accounting obligations in Ecuador in order to support entrepreneurs and prevent them from going bankrupt. President of Ecuador Lenin Moreno has announced economic measures focused on outlining the financial steps to sustain business and the economy during the pandemic. Economic measures in place During the last months, President of Ecuador Lenin Moreno has announced economic measures focused on outlining the financial steps to sustain business and the economy during the pandemic. These measures include: US$4 billion reduction in public spendingThe single tax on vehicles with an appraisal greater than US$20,000 must pay a contribution of 5% of the appraisal value.Creation of a fund for loaning to small and medium-sized companies at 5% interest, with a 3-month grace period and a 36-month term.Merge the Ministries of Telecommunications and Transport Additionally, Lenin Moreno announced that Ecuador received an international collaboration for around US$60 million as exclusive funds to face the needs that have...

What are the Accounting and Taxation Requirements in Bolivia?

by Accounting Team Bolivia | May 5, 2020

Expanding multinationals must understand and comply with their accounting and taxation requirements in Bolivia. This is crucial for business success when setting up and operating commercially over the long term. Failure to comply with local accounting and tax obligations could result in financial or other sanctions. We give an overview on the accounting and tax obligations in Bolivia for business. Of course, it is highly recommended to engage with a local bilingual accounting expert in the country to support your business. What are the tax rates in Bolivia? The value added tax rate is 13%, which is a low percentage compared to other countries in the region. Your company will primarily be subject to corporate income tax, value added tax (VAT) and social security contributions in Bolivia. Below is a list of aspects to consider when it comes to taxes in Bolivia: The value added tax rate is 13%, which is a low percentage compared to other countries in the region. It does not apply to all export products and services.The capital gains tax rate is 25%, but it is exempt from the payment of transaction tax in the Bolivian stock market.The tax rate for establishing a branch of a company in Bolivia is 12.5%. The tax year varies depending on the activity of the company: Banking, commercial, and service activities have a fiscal year of 31 DecemberIndustrial, oil and gas companies have a fiscal year ending 31 March; Agro-industrial and forestry companies have a fiscal year ending 30 JuneMining companies' fiscal year ends 30 September. Each company must appoint an auditor to...

Update on Ecuador Taxation and Accounting Compliance

by Accounting Team Ecuador | Mar 21, 2020

Understand crucial reforms of Ecuador’s taxation and accounting compliance regulations, and what should be expected for the year 2020 on Ecuador’s tax front. The country's President Lenin Moreno is trying to reform the economy and improve the business environment with the help of the International Monetary Fund (IMF). An important part of these attempts was a major tax reform at the end of last year. 18 tax reforms were implemented between 2007 and 2017. What were the effects on Ecuador's tax system and how does it look now? Timeline of changes in Ecuador’s taxation and accounting compliance The elimination of the advanced payment of income tax as a minimum income tax and the elimination/reduction of the foreign currency exit tax is what the business sector calls for the most. President Rafael Correa, who had his presidential term from 2007 to 2017, announced from the beginning of his campaign that his intentions were to remove inequalities, distribute wealth and achieve social justice. He also sought to eliminate commercial activities connected with tax havens. As Ecuador is a dollarized economy, it was not an option to use an exchange rate policy as a tool to balance public finances. This led, in 2012, to the creation of the controversial foreign currency exit tax. In order to support investment in national production, encourage the use of environmentally friendly technologies, support strategic economic sectors and encourage job creation, the government issued the Organic Code of Production, commerce, and investments in 2010. The Moreno government The Moreno...

Meet Sandra Vargas, Manager of Accounting and Payroll Services in Colombia

by Corporate Team | Mar 20, 2020

"Working with foreign clients interested in investing in our country allows us the experience of being able to contribute our expertise on the accounting and financial aspects of Colombian law, and provide quality services to make it happen." Sandra Vargas, our Accounting Manager in Colombia, oversees all the operations and service delivery of Biz Latin Hub's largest accounting team. In our Corporate Office in Bogotá, Sandra is responsible for ensuring the delivery of the highest quality accounting, tax and payroll services in Colombia, which is our largest client base. Sandra has been a member of our team since 2018. Previously, she was the Senior Accountant for Japanese company Nidec, based in the US. There, she was responsible for consolidating and reporting the company's financial statements for the parent company in Japan, and had the opportunity to learn about the US Generally Accepted Accounting Principles. Sandra graduated as a Food Technologist at SENA. She also studied as a Public Accountant at Universidad del Valle, Financial Management Specialization at Jorge Tadeo Lozano University, and an IFRS Diploma at Sergio Arboleda University. Sandra also undertook a number of courses with the Bogotá Chamber of Commerce to diversify her experience and expertise, including in: Logistics and International TransportationInternational Market Research Marketing for InternationalizationFinancial Viability for Internationalization. What do you enjoy most about your role? When asked about what she enjoys in her role, Sandra enjoys the opportunity to work with international...