Tax Reform- Tag Archives - Business News and Updates


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Why Seek Tax Advisory Services in Colombia?

Why Seek Tax Advisory Services in Colombia?

Colombia is considered one of the most attractive countries in South America to invest and to do business in. However, with an ever-changing tax landscape, it is essential for companies and business owners to engage with a trusted tax advisory services provider. We outline the most important reasons why you must seek tax advisory services in Colombia when doing business in the country. Colombian tax system is complex In Colombia, registration processes at the national level are different from those at the municipal level. As we explored in our article “How to file taxes as a corporation in Colombia”, companies operating in the country are expected to comply with tax regulations on a national, regional, and municipal level. This multilayer of corporate compliance requirements might be challenging for those who are not expert in the field. For example, businesses operating in Colombia should be aware that registration processes at the national level are different from those at the municipal level. Most companies are assigned a National Tax ID number or RUT (Registro Único Tributario) during the national incorporation process. However, they must register before the municipal tax authorities that supervised the territory where they operate. This is to request a municipal Tax ID or RIT (Registro de Información Tributaria). This requirement is commonly overlooked and may cause fines and penalties. To avoid this, you must count on a local tax advisory services provider. Constantly changing tax regulations Colombia is now famous in Latin America for its constant fiscal reforms. A...

June 2020 Regulatory Update: South and Central America

June 2020 Regulatory Update: South and Central America

Our professionals report notable regulatory updates for June 2020. Biz Latin Hub’s team of legal and accounting professionals based across Latin America report the following notable regulatory updates for June 2020 in Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Mexico, Panama, Peru, and Uruguay. In our regulatory update series, we report on legal and other reforms that could significantly impact businesses in Latin America. Note that this not an exhaustive list of all regulatory changes occurring in countries listed below. For more information on how we can support your regulatory compliance needs, get in touch with our team. Argentina RegulationDetailsNew SAS requirementsThe Argentine government introduced additional requirements for the registration and operation of the Sociedad de Acciones Simplificadas (SAS) legal entity, also known as the Simplified Shares Company. What this means: Other legal entities may become comparatively more attractive for businesses expanding into Argentina. Brazil RegulationDetailsMP 931/20This regulation extends the deadline for companies to hold Annual General Meetings from 30 April 2020 to 31 July 2020. Chile The Chilean government and institutions introduced several regulatory updates in June. RegulationDetailsLaw 21.232Allows employees to access their unemployment insurance fund under exceptional circumstances.Law 21.234Introduction of new rules regarding liabilities in cases of theft and robbery.NCG 30Issued by the Comisión para el Mercado Financiero. Simplifies the registration of securities, stocks, and bonds. Costa...

Tariff and Tax Reforms in Ecuador: Outcomes for Business

Tariff and Tax Reforms in Ecuador: Outcomes for Business

When starting a business anywhere in the world, political vigilance is essential. Being aware of the government of the time, their import/export policies and any upcoming reforms can be decisive in the success of your business. Time after time, businesses are caught out by simply not being aware of their current political conditions.  Like most of Latin America, Ecuador is increasing its awareness of international business and investment opportunities. More and more foreign investors are seeing the small nation as an increasingly exciting and fruitful place to do business.  Ecuador’s government recently made a raft of resolutions to support business activity and address other items on its agenda. We outline the potential impacts for business in the country. Understanding Tax Reforms in Ecuador?Ecuador business and political climate Cheap labor, an educated workforce, global maritime trade ties, a straightforward business sector, and a stable, business-minded new government make Ecuador one of the most attractive locations in Latin America for foreign investors. Its recent challenge has been to build sustainability and further reinforcement into its economic performance and policies year on year. Recently, Lenín Moreno, Ecuador’s President since May 2017, announced 6 economic measures and 13 reform proposals. These economic changes have been nicknamed “the package”. The most recent proposed changes are the second round of economic reforms this government has put in place to alter Ecuador’s current negative debt trajectory. The majority of these reforms are positive for...

Capital Gains Tax Scrapped: Outcomes for New Zealand Business

Capital Gains Tax Scrapped: Outcomes for New Zealand Business

New Zealand’s relatively small size and isolation in the South Pacific hides a deceptively impressive level of economic growth and productivity. The Pacific Island nation has the third freest economy in the world. Its low barriers to entry make it one of the easiest countries for incorporating and operating a business.  New Zealand’s commercial landscape has long operated without a capital gains tax. Despite the ruling party’s advocacy for a capital gains tax for ten years, plans to do so have been abandoned. New Zealand’s interest in supporting investment and business competitiveness has ultimately halted its capital gains tax agenda. What is capital gains tax? Capital gains tax (CGT) is levied off profits gained from the sale of a non-inventory asset, such as real estate or investment. Exceptions to the CGT can vary, but typically include earnings made from betting or lottery, gifts to spouses or charity. A tax-free allowance also allows people to earn profits on sales tax-free under a certain amount. Capital gains tax isn’t universal, but many countries enforce one at varied rates. This tax brings in revenue for the government in extra-commercial areas, technically, such as property speculation. New Zealand’s economic ecosystem According to World Bank’s 2018 Ease of Doing Business Index, New Zealand is the best country in the world to run a business. The country has experienced positive economic growth for 33 of the last 35 years. Its relative isolation and liberal trade policies have fostered an economy largely dependent on international trade and foreign...

What is the New Fiscal Policy for El Salvador in 2019?

What is the New Fiscal Policy for El Salvador in 2019?

Despite being the smallest country in Central America, El Salvador expects strong economic growth in 2019. The Central American country has a range of appealing national sectors and is a great trading hub which has assisted in the encouragement of FDI in recent years.  A recent government fiscal initiative is set to further stimulate the local economy, with the modified tax legislation set to attract further investment in the region. The 'Tax on Financial Transactions Act' will offer incentives for businesses looking to expanding their operations to El Salvador. In this article, we will explain what the law entails, what impact the new act will have and how the economy and both local and foreign business will benefit.  New Fiscal Policy in El Salvador - What was the Financial Transaction Tax Law? El Salvador previously had a tax for banking transactions, known as the 'Tax on Financial Operations' (El Impuesto a las Operaciones Financieras - IOF). This fiscal policy was created in 2014 and applied to all banking transactions and financial operations - taxing checks and electronic transfers within El Salvador.   Companies in El Salvador, in order to adhere to all accounting & taxation requirements, had to prepare and present monthly and annual tax declarations to the national tax authority, including the IOF for all transactions. The IOF is infamous for its bureaucratic processes that slowed down all banking transactions.  How did the IOF work? Before the tax reform, the IOF was applied as follows: On every financial operation, electronic transfer, loan disbursements or...

How the Different Aspects of the Chilean Tax Reform Could Affect Your Business?

How the Different Aspects of the Chilean Tax Reform Could Affect Your Business?

As a result of the social demands that have been generated in the country by greater public expenditure in areas such as education, a tax reform is already a reality that will increase the revenue in Chile. This article will look at the different aspects of this tax reform, and it´s effect on businesses operating in Chile.  Chilean Tax Reform As we have already mentioned in previous entries, as of January 2017, taxpayers of the first category Tax obliged to carry and declare their effective income according to full accounting, must choose between the two new general tax regimes, that is “attributed income ” (Article 14A) or “semi integrated” (Article 14B). In addition to this, the SME regime is also improved, with new benefits for companies. Also, in 2017 and 2018, first category tax rates will increase for all three regimes from a rate of 24% in the 2016 trading year to 27% in 2018 for the “Semi Integrated” regime. Given the increase in the First Category Tax rate, the variable rate must be recalculated annually for the determination of its mandatory monthly provisional payments (payments in advance of the annual tax, calculated on net sales) As part of the most relevant changes, already in January 2016 the presumed income regime, which regulates mining, transport and agricultural activity, was also modified. The conditions that were modified are: the maximum limits of income or sales, limits to effective capital when starting activities, stricter rules of relationship, and also have more and better controls. As part of our articles, we will continue to review some of...

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