Latin America: FY2021 - a very active tax year<i>Welcome to our inaugural issue</i>
The global pandemic forced Latin American governments to focus on social welfare and plan vaccine deployment for their populations in the second half of 2020. The time to start covering these expenses has come, and there are different approaches being followed – all of which, not surprisingly, are geared towards adding revenue to national coffers.
Among the approaches we are seeing are the addition of new taxes (reforms, and plans to reform, equity tax provisions in Argentina, Colombia and Mexico); a proposed digital services tax in Colombia and Argentina and digital services taxes (because one is not enough) in Brazil; audit enhancement rules (Argentina and Mexico’s DAC 6 disclosure provisions); employee protection guided provisions (Mexico’s attack on insourcing/outsourcing structures); and a general enhancement of TP audit activities in all the region’s countries.
FY2021 promises to be a very active tax year, and prudent multinational companies doing business in the region should be paying meticulous attention to even the smallest details in their audit defense files in the region.
In this inaugural issue of LatAm Tax Insights, we offer articles from our colleagues across the region discussing the latest developments in these approaches.