Latin America has been rocked over the last decade by shocks to its financial systems and the instability that this has caused. The turmoil damaged the investment climate severely. However, as Latin America economies recover, there are signs that investors are regaining their appetite for transactions in the region.
It is in this context that International Tax Review co-publishes the new edition of its guide to tax issues in Latin America with leading tax advisers: Baker & McKenzie, Deloitte, Ernst & Young and PricewaterhouseCoopers. The guide is the sixth in our series of regional guides.
In an overview, Manuel Solano, of Ernst & Young, comments on how issues such as transfer pricing and thin capitalization have taken root in Latin America.
PricewaterhouseCoopers' introduction focuses on important considerations for taxpayers such as supply chain management, capital structure and the repatriation of earnings.
The tax benefits of using different financing techniques such as leasing and trusts are under the spotlight in Deloitte's article on Argentina.
Ernst & Young try to explain the complexities behind the taxation of cross-border services in Brazil.
The appeal of Chile as a country where companies can base their investments in the rest of the region is discussed by PricewaterhouseCoopers.
Baker & McKenzie in Colombia examines the reform which could reduce tax bills over the next three years for investors in productive tangible fixed assets.
The tax reform which was passed by the Mexican Congress towards the end of 2004. Significant changes including to the thin capitalization rules and the definition of a tax haven, are discussed by Deloitte, which also highlights the reform will have for business profits.
We hope the insights these specialist tax advisers offer in International Tax Review's regional guide to Latin America help you when doing work in the region.
Ralph Cunningham
