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Overview of Argentina’s Corporate Tax Rate

Overview of Argentina’s Corporate Tax Rate

Argentina's corporate tax rate is calculated according to a number of factors related to your commercial activity and geographic location, both inside and outside the South American nation. If you are considering company incorporation in Argentina, you will need to understand the corporate tax regime you will be dealing with, in order to maximize your potential benefits in Latin America's third-largest economy by GDP. Argentina's Corporate Tax Rate National Argentina's corporate tax rate is handled by the Federal Administration for Public Revenue (AFIP). Among its responsibilities, the entity handles: Registration of Tax ID for physical persons and legal entitiesDetermination process for national taxesFiling of tax returnsThe imposition of fines and penalties Management of the appeals process related to taxes Municipal Provincial and municipal administrations levy turnover tax, real estate tax, stamp duty, vehicle tax, and tax on public advertising. The local tax entity for the capital city of Buenos Aires is the “Government Administration for Public Revenue" (AGIP). General Compliance Requirements National tax ID registry Entities seeking to operate in Argentina must apply to the AFIP for a "Single Tax Identification Number," or CUIT (pronounced "coo-it"). This will be the reference for both national and municipal taxes. Return filing National Taxes are filed online through the AFIP website. Municipal Taxes are filed before the municipal tax authority. That is the the AGIP for entities operating in Buenos Aires and varies by region outside. Imports/ Exports...

Corporate Taxes in Colombia: An Overview

Corporate Taxes in Colombia: An Overview

Corporate taxes in Colombia are imposed at the national and regional levels. All legal persons or entities operating in the country must pay such taxes. Local law dictates regional taxes, which are set by each department (state) or municipality. Understanding the different corporate taxes in Colombia is essential for foreign executives thinking about incorporating a company in the country. Who regulates corporate taxes in Colombia? In Colombia, the National Tax and Customs Directorate (DIAN) is responsible for all process related to national taxes, including: The DIAN oversees corporate taxes in Colombia National Tax registration and Tax IDTax determination procedureTax returnFines and penaltiesManaging the appeals process related to taxation Each department also has its own taxation agency to handle local taxes, which for local businesses are largely realted to taxable turnover and buying property in Colombia. The District Finance Secretariate (SHD) is another taxation body, which can collect taxes and impose sanctions on entities not registered in any other jurisdiction or that carry out their activities remotely from abroad. Finding a trusted tax advisor is therefore crucial to negotiating Colombia's tax regime to your greatest advantage. General tax compliance requirements Corportate taxes in Colombia are imposed on entities operating in the country or generating revenue inside the country, who must comply with the following requirements: Apply for a Tax Identification Number: This must be done during the company incorporation process, with the company assigned a...

An Overview of Chile’s Corporate Tax Rate

An Overview of Chile’s Corporate Tax Rate

Chile's status as a regional pioneer of free-market economics has converted it into one of Latin America's most globalized economies, with the highest level of human development in the region. National tax policies have been a crucial aspect of that development and continue to foster a positive environment for doing business in Chile. Alongside rich natural resources and a capable and educated workforce, Chile's corporate tax rate positions the country as an attractive candidate for commercial expansion. Chile's corporate tax rate and compliance requirements The “Internal Taxes Service" is the national tax authority, overseeing Chile's corporate tax rate. That rate is centralized and imposed on a national level, as are Chile's other taxes. National tax ID – Registry Chile's corporate tax rate is favorable to business. All individuals or entities must obtain a local Tax Identification number or “RUT.” To be issued with a RUT, you must provide the following documents: Proof of power of attorney for the person overseeing the processArticles of incorporation A certificate of good standing A tax residence certificate Import/export compliance requirements in Chile Chile's customs authority is the National Customs Service. It allows the importation of goods with a value below $1,000 (USD) ras long as the following documents can be provided: An entry summary declarationAn original bill of loading (maritime), consignment note (road), or airway bill (air) An original commercial invoice -- highlighting the item for sale and its valueProof of power of attorney for the person...

A Bitesize Guide to Corporate Tax in Brazil

A Bitesize Guide to Corporate Tax in Brazil

Understanding corporate tax in Brazil is essential to the success and good health of your company while entering the Brazilian market. Brazil, the largest economy in Latin America, has a complex tax system whose rules are defined in the Federal Constitution and based on the various regulations issued by tax authorities. All companies operating in Brazil are subject to the payment of taxes. However, taxes vary according to the business activity that is developed. Learn everything you need to know about corporate tax in Brazil before taking advantage of business opportunities in 'the giant of South America'. Corporate tax in Brazil The Brazilian tax system is regulated by the Federal Constitution, and other state and municipal laws. In addition, there are some specific tax regulations that apply to companies operating in the country, depending on their business activity. In accordance with corporate tax compliance in Brazil, each company must pay taxes to the federal, state and municipal tax authorities. Federal taxes The tax on the importation of foreign products is applied from the entry of said products into Brazilian territory. Import tax (Imposto de Importação): The tax on the importation of foreign products is applied from the entry of said products into Brazilian territory. Its calculation is based on a specific rate defined by law or it can be based on the price that the product would reach once it is established in the Brazilian market. Export tax (Imposto de Exportação): The tax on the export of national products is charged when these goods are taken outside the...

Explaining Corporate Dividend Tax in Colombia For Businesses

Explaining Corporate Dividend Tax in Colombia For Businesses

Find out everything you need to know about corporate dividend tax for businesses in Colombia. Understanding corporate dividend tax might be a challenging experience for companies recently operating or looking to operate in Colombia. We outline the key concepts every foreign executive should consider when complying with local regulations and interacting with Colombian tax authorities. What are dividends for tax purposes in Colombia? In Colombia, dividends can be taxed by the company who distributes them. As we explored in our article 'Understanding dividend withholding tax in Colombia for US residents in 2020', the definition of dividends for tax purposes can be found in section 30 of the Colombian Tax Code, which states the following: “Any distribution of benefits, in money or kind, charged to the equity that is made to partners, shareholders, community members, associates, subscribers or similar. The transfer of profits that correspond to income and occasional gains of national source obtained through permanent establishments or branches in Colombia, by non-resident natural persons or foreign companies and entities, in favour of related companies abroad.” Furthermore, according to the 48 and 49 section of the National Tax Code, dividends are taxed considering income tax. Likewise, dividends can be received by a third party without being taxed. Understand the difference between taxed and non-taxed dividends As previously explained, dividends in Colombia may be taxed by the company in charge of distributing them or by the individual or entity receiving said dividends. This...

Overview of Corporate Tax and Planning in Colombia

Overview of Corporate Tax and Planning in Colombia

The corporate tax season in Colombia usually takes place between February and June of each year. During this time, companies of all sizes and sectors doing business in the country are encouraged to review their corporate tax expenditure and look for optimization alternatives through corporate tax planning for the next year. Understand why corporate tax planning will maintain your business in good standing while complying with Colombian fiscal policy. What is corporate tax in Colombia and who is subject to it? In Colombia, the general tax rate for 2020 is 32% of taxable income and will decrease to 31% in 2021. As stated in Article 5 of the Colombian Tax Code “corporate tax is based on income, occasional earnings and international transfer of income, as well as on commercial profits in the case of branches of companies and foreign entities”. Likewise, Article 12 of the Tax Code states that entities who are fiscal residents in Colombia are taxed for their global source income, and non-resident corporations are taxed only for their local source income. This means that in both cases, residents and non-residents who receive income in Colombia must comply with corporate tax requirements. However, non-residents usually comply with their corporate tax obligations through the withholdings that fiscal residents are bound to do when making payments to non-residents. In Colombia, the general tax rate for 2020 is 32% of taxable income and will decrease to 31% in 2021. Hotels and hospitals, publishing houses and partially state-owned companies have a tax rate of 9% and the users of free...

How Corporate Tax Planning Strategies Reduce Liability and Improve Profitability

How Corporate Tax Planning Strategies Reduce Liability and Improve Profitability

Find out the essential elements for corporate tax planning strategies and how your company can make the most of them to reduce liabilities and improve profitability. Businesses and multinational entities must remain compliant with the law administered across all countries they operate within. Depending on tax agreements and arrangements between jurisdictions, this can make for a complex tax compliance burden to bear, especially for foreign companies unfamiliar with these markets. What is tax planning? Tax planning refers to the “arrangement of a person’s business or private affairs in order to minimize tax liability.” In its most basic definition by the Organization for Economic Co-operation and Development - OECD, tax planning refers to the “arrangement of a person’s business or private affairs in order to minimize tax liability.” Corporate tax planning focuses solely on the business element of this definition. For a more detailed definition, tax planning is understood as “the activity undertaken by a company or individual to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the law.” From these definitions, we can extract that tax planning has 2 fundamental premises. The first is that entities and individuals can develop activities aiming to reduce their tax burdens and optimize their profits. And the second, that said activities must always respect the appliable law. It is important to note that every activity aiming to optimize the tax burdens of an...

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