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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...

Manage your Business Risks with Due Diligence in Mexico

Manage your Business Risks with Due Diligence in Mexico

When doing business in Mexico, managing your business' risks with due diligence practices is essential to its success and longevity. Language and/or cultural barriers, understanding the market and the way of handling businesses are challenges that foreign business owners can face when expanding abroad. Buying existing companies or partnering with locals are key ways to reduce these challenges and get support navigating an unfamiliar market.However, it’s imperative to protect yourself when undertaking either of these processes in Mexico by conducting thorough due diligence checks of the companies and people you will surround yourself with.The purpose of this process is to minimize the risk present in a transaction by performing a detailed and independent analysis of the various business departments of the firm. Find out more about due diligence in Mexico and how to manage your business risks. Reducing risks and being prepared is key for starting off on the right foot in Mexico. Why is due diligence important in Mexico? Due to its strategic location and large population, Mexico is an attractive base for setting up a business in Latin America. Over the last decades, Mexico has attracted an enormous amount of foreign investment, and increasing numbers of large companies are establishing themselves in the country. These companies commonly enter the market by buying existing companies that hire local employees, or by partnering with other local companies.Despite this, commercial security remains a challenge for Mexico, and companies are encouraged to protect themselves...

Why Establish Your Holding Company in Panama?

Why Establish Your Holding Company in Panama?

For many years, Panama has been a destination of choice for entrepreneurs to establish a company for their Latin American expansion. The economy is one of the fastest growing in the region, showing an average increase in annual GDP of 5.6% between the years 2013-2017. It’s projected to remain at the top of regional growth rankings once again for 2019. Panama offers a range of advantageous commercial conditions making it highly competitive to its neighbours, including: low tax and labor costs easy constitution process simple shareholder registration low cost on annual renewal fees. One important way to access the Panamanian market and begin your regional expansion is through establishing a holding company. Subsidiary Panama? What is a holding company in Panama? Holding companies are parent companies that have majority control over another company through the volume of their voting stock. They exist solely to control other companies, and at times may own other assets in the subordinate company, such as real estate, trademarks and patents. Holding companies may even own 100% of another business, known as a ‘wholly owned subsidiary.’ With this influence, a holding company can oversee the policies, procedures and management decisions of this second company. However, though it owns a large share of another company’s assets, the holding company does not participate in its day-to-day activities. Holding companies and their subsidiaries take several legal forms; they can be limited liability companies, corporations, or limited partnerships. Straightforward company formation...

Construction Opportunities from Peru’s Infrastructure Investment

Construction Opportunities from Peru’s Infrastructure Investment

Latin America’s economies are growing at exponential rates and foreign investments are flooding into the region at rates never seen before. As the fifth largest economy in the region, Peru contributes a lot to this success. However, although it has a strong economy, there is a lack of adequate infrastructure in the country.  The government is now dedicating time, money, and resources to improving this sector. Foreign investors and businesses in the industry are looking to gain from these improvement plans. With macroeconomic stability and consistently positive economic growth rates, foreigners  and businesses are gravitating towards Peru’s investment market.  Peru Construction Opportunties - Historical infrastructure woes Peru’s infrastructure problems stem from far back. For years, the country had poor access to adequate roads, bridges, and passes nationwide. Cities were well connected, but small towns and regions had little to no access to the rest of the country. Ultimately, this perpetuated poverty and economic disparity in disconnected regions of the country.  In 2016, the government acknowledged these problems and started to make plans for reparations and improvements. Total, the country pledged over US$33 billion to improvements. However, as they were planning and implementing these changes, disaster struck the country. In March of 2017, ten times the normal rainfall fell over the country’s landscape, prompting severe flooding and landslide. Countless roads, homes, and the central railroad were all destroyed as a result. Focused on safety and recovery, the...

Corporate Accounting and Taxation Considerations in New Zealand

Corporate Accounting and Taxation Considerations in New Zealand

New Zealand is fast-becoming an investment hotspot for international entrepreneurs looking to take their businesses to new heights. As the world becomes increasingly globalized and businesses seek opportunities outside of their home markets, entering into a country such as New Zealand offers a whole host of benefits, not least because of its free trade agreements, strong export market and unique geographical position, neighbouring the Australian economy. However, in order to make the most out of international expansion and find success in New Zealand, you must be aware of accounting and taxation laws. Of course, working with a local accountant is critical to your long-term success, but having an understanding of the basics will give you food for thought and help you make the right investments. Below, we round up some of the most important accounting and taxation considerations in New Zealand… Corporate Tax in New Zealand All businesses that are resident in New Zealand must pay corporate tax on their income - both income that they make inside of New Zealand, and income they make around the world. That is why so many entrepreneurs choose to set up subsidiaries or branch offices in New Zealand to protect their overseas assets and pay tax only on New Zealand-sourced income. The current corporate tax rate in New Zealand is 28%, and businesses must submit their tax returns on 31 March and pay provisional taxes on 15 January, 31 March, and 7 May. Earnings that are made by branch offices and subsidiaries are subject to the same 28% tax rate as other New Zealand businesses, but...

How Does the Peruvian Fiscal System Function for Mining Companies?

How Does the Peruvian Fiscal System Function for Mining Companies?

FocusEconomics experts forecast that investor confidence in Peruvian will remain high for some time as the new government confirms the country´s openness to foreign participation in the local economy. The country's GDP is expected to expand 3.8% in 2019, and 3.7% in 2020, further supporting investor confidence in the region.  Because of this increase in investor confidence, investment in the region is expected to grow dramatically this year. In fact, there are significant mining projects that have begun in several regions across the nation. As not an only a Latin America mining leader, but a global mining power, smart foreign investors are very aware of the investment opportunities available in the Peruvian mining sector.  For companies involved in the Peruvian mining sector, it is vital to have a comprehensive understanding of the fiscal system and how it affects their mining operations. Peru’s progressive fiscal system tends to create flexible conditions for mining companies, while also the collecting an adequate share of taxes for the greater society.  Peruvian Fiscal System - Mining taxes Corporate Income Tax Peruvian corporations are subject to corporate income tax on their global taxable income. This refers to all companies established in Peru. The corporate income tax also applied to mining companies and comes in at 29.5%. In addition, there is a dividend tax at a rate of 5% imposed on the distributions of profits for both branches of foreign companies and resident companies. All mining companies in Peru must prepare and file an annual tax return. This tax...

How Sebastián Piñera is leading Chile Towards Economic Success

How Sebastián Piñera is leading Chile Towards Economic Success

Following Piñera’s second-term election, the conservative billionaire said that there was “no better school for being a good president than La Moneda”, referencing his previous tenure in the role. Whilst there is no getting away from the fact that his second appointment was met with some criticism, Piñera has already made an impact since the 2017 election, and is not only leading Chile to economic growth but putting the country on the investment map. Below, we take a closer look at his ambitions for Chile in 2019 and beyond, exploring how some of his most recent appointments and policies will impact the country’s economy. Chile Economic Success - A Confident Start After being given the Palacio de La Moneda for a second term, Piñera was quick to announce his plans for the Chilean economy. His key ambition is to restore economic growth in the country, something we’re already seeing following a slight dip in January 2017. Indeed, from May 2017 to November 2018, Chile has enjoyed steady levels of economic growth. Quarterly GDP rates have increased by 3.3% to 5.3% in previous years, often beating forecasts. The President also hopes to improve the quality of the country’s democracy and promote equality of opportunity to “ensure nobody is left out” as Chile heads into new economic times. So far, voters seem to be impressed with his model of democracy, with a poll in 2018 suggesting that 70% of Chileans were better off than their parents, attributing to increasing middle-class citizenship and higher levels of disposable income which boost the economy. A Government Debt Battle One...

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