International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Technology companies targeted in new laws across Latin America

Technology companies need to understand the tax incentives available to them

Tax incentives being introduced across the Latin America (Latam) region are targeting profitable technology companies. Juan Frers, director of the Worldwide TaxNet, explains how foreign businesses can use these tax benefits to prosper in the region.

The LatAm region is moving quickly on passing legislation to tax the digital economy and attract foreign investment from the technology sector while boosting tax revenues.

Digital services taxes (DSTs) in Brazil, Mexico Argentina and Chile, as well as Brazil’s anticipated tax reform and Mexico’s controversial law to block foreign digital services all highlight the trend in this region.

However, it is not all bad news for technology companies as many countries, including Argentina, Chile, Peru, and Uruguay, are also offering benefits such as discounts on income tax and capital gains to attract companies.

Like the rest of the world, the regional economies in Latam have been suffering from economic crises, exacerbated by the Covid-19 pandemic. Although many businesses closed, the profits of technology companies, including FinTech, soared.

468x60_NEWSLETTER

In 2020, several countries created laws offering tax incentives to technology companies to bring in more investment from this sector and reap the revenue benefits of this boom. In 2021, the growth in this sector is expected to continue and governments across the region are ready to tap into the benefits it brings.

In a webinar hosted by ITR, Juan Frers, director of the Worldwide TaxNet, will discuss the laws coming into effect in various countries across the Latam, offering practical insight for technology companies and the advisors who serve them.

Latam is offers new opportunities for technology companies from the US and Europe to invest and grow. The number of tax incentives on offer is greater than those found in the US and across Europe, as well as the cheaper currency and costs.

However, businesses and their advisors need to understand the changing laws to avoid being caught in an unexpected tax dispute. In addition, not all countries are opening their borders to foreign investment, making it crucial to plan investments carefully.

more across site & bottom lb ros

More from across our site

A steady stream of countries has announced steps towards implementing pillar two, but Korea has got there first. Ralph Cunningham finds out what tax executives should do next.
The BEPS Monitoring Group has found a rare point of agreement with business bodies advocating an EU-wide one-stop-shop for compliance under BEFIT.
Former PwC partner Peter-John Collins has been banned from serving as a tax agent in Australia, while Brazil reports its best-ever year of tax collection on record.
Industry groups are concerned about the shift away from the ALP towards formulary apportionment as part of a common consolidated corporate tax base across the EU.
The former tax official in Italy will take up her post in April.
With marked economic disruption matched by a frenetic rate of regulatory upheaval, ITR partnered with Asia’s leading legal minds to navigate the continent’s growing complexity.
Lawmakers seem more reticent than ever to make ambitious tax proposals since the disastrous ‘mini-budget’ last September, but the country needs serious change.
The panel, the only one dedicated to tax at the World Economic Forum, comprised government ministers and other officials.
Colombian Finance Minister José Antonio Ocampo announced preparations for a Latin American tax summit, while the potentially ‘dangerous’ Inflation Reduction Act has come under fire.
The OECD’s two-pillar solution may increase global tax revenue gains by more than $200 billion a year, but pillar one is the key to such gains due to its fundamental changes to taxing rights.