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

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

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...

Changes to Accounting Obligations in Ecuador During COVID-19

Changes to Accounting Obligations in Ecuador During COVID-19

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?

What are the Accounting and Taxation Requirements in Bolivia?

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...

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

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

"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...

Meet Gustavo Servín, our Executive Corporate Accountant in Paraguay

Meet Gustavo Servín, our Executive Corporate Accountant in Paraguay

Gustavo has been a part of our team since the formal opening of our new office in Asunción, Paraguay in December 2019. Gustavo González works as Biz Latin Hub’s Executive Corporate Accountant in Paraguay. Gustavo is one of the newest members of Biz Latin Hub, having been a part of our team since the formal opening of our new office in Asunción, Paraguay in December 2019. As our Executive Corporate Accountant in Paraguay, Gustavo has been influential in supporting clients from a variety of countries and sectors achieve their business objectives in the country. Gustavo has made an extraordinary effort to provide comprehensive, tailored solutions to serve the commercial needs of his clients and with the highest level of professionalism and attention to detail. “I really enjoy when I find the solution to our customer’s needs,” Gustavo says. “Being able to deliver results and keep our clients happy is very important for me. For me, creating links between colleagues and clients that exceed the purely professional field is the most satisfactory part of my job.” Besides being a key addition to our Latin America leadership team, Gustavo enjoys the outdoors and sports, especially swimming and biking. In 2003, Gustavo graduated from Asunción National University in Paraguay. After working in a variety of positions as Accountancy, Auditing, Tax Advisory, and Management, he joined the Biz Latin Hub team in early December 2019, and has been supporting the company’s operations in the newly established office.  Gustavo has experience in several areas, specializing in...

Economic Growth Law: Tax Discounts for Business in Colombia

Economic Growth Law: Tax Discounts for Business in Colombia

On 27 December 2019, Colombian President Ivan Duque signed the country’s new Economic Growth Law, called ‘Ley de Crecimiento Económico’, a stimulus package aimed to support business and low income households. The law introduces new tax discounts for businesses in Colombia, among other reduced taxes and contributions for households. Colombia is one of the most promising countries in Latin America for foreign investors and entrepreneurs, and offers stable legal frameworks for businesses. Despite recent political events, Colombia remains a strong contender for foreign investment and shows consistently positive economic growth. Tax discounts for business in Colombia The Economic Growth Law introduces new tax discounts for businesses in Colombia, among other reduced taxes and contributions. Colombia’s Congress approved the Economic Growth Law (Ley de Crecimiento Económico), and President Duque promptly signed it in late December. From 2020 onwards, the government expects the law to boost foreign direct investment into the country, thanks to new tax discounts for business in Colombia. Businesses can enjoy reduced taxes on certain imported capital goods. The Law promises easier tax filing processes for smaller businesses. Additionally, the Law also implements changes to: Goods and services tax National consumption tax Individual income tax Dividends and participations Standardization Tax Income tax Declaration of assets abroad Financial transactions tax (GMF in Spanish) Procedural aspects of business. Notably, company income tax will be reduced from 33% to 30% over three years,...

Key Requirements for Corporate Compliance in Panama

Key Requirements for Corporate Compliance in Panama

Panama is emerging as a regional hotspot for commercial activity and increasing opportunities for foreign businesses. The country famously offers globally competitive conditions for company formation and tax compliance, projecting it as a leader in Central America for investment and economic growth. It's crucial for businesses to understand their obligations for corporate compliance in Panama. Understanding and complying with local law means being able to expand into Panama as quickly and smoothly as possible, and undertake your commercial activities with confidence. Our Panama legal expert offers guidance on key requirements for corporate compliance in Panama. Corporate compliance in Panama: key requirements There are different types of legal entities that you can incorporate in Panama. In many cases, the most convenient options for foreign multinationals is a Corporation (Sociedad Anónima in Spanish) or Limited Liability Company or LLC (Sociedad de responsabilidad limitada). These types of corporations can be incorporated with just one shareholder. These entities allow 100% foreign ownership as either a natural person or a legal entity (an individual or another company). Both an Corporation and a Limited Liability Company can be incorporated within a week. What’s the difference between a Corporation and a Limited Liability Company? The main difference between these two entities is that in a Limited Liability Company, the shareholder needs to be registered with the local public registry institution (Registro Público de Panamá). For an Corporation, the shareholder’s...

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