Tax Incentives in Latin America 05/11/2012 CHILE a) Tax Stability - - PowerPoint PPT Presentation

Tax Incentives in Latin America

05/11/2012

CHILE

a) Tax Stability Agreements b) Free Trade Zones b) Free Trade Zones c) Regional Incentives d) Industry Specific Incentives e) Export Incentives f) R&D Investments Incentives g) Chilean Holding Company h) Tax Treaties and Free Trade Agreements

Tax Incentives in Latin America

Colombia

a) Free Trade Zones b) Andean Pact and tax treaties b) Andean Pact and tax treaties c) Free Trade Agreements d) Incentives for new small businesses and specific industries e) Colombian Branches of Foreign Corporations only taxed on Colombian-Source Income Colombian Source Income

Tax Incentives in Latin America

Ecuador

a) Reinvestment of Profits reduces the Income Tax Rate from 22% to 12% b) Certain Deferral of Income Tax payments for new investments b) Certain Deferral of Income Tax payments for new investments c) Tax Treaties d) Special Benefits for Investments in certain areas and certain industries. e) No withholding taxes for interest payments to international banks on loans granted for more than 1 year loans granted for more than 1 year

Tax Incentives in Latin America

Guatemala

a) Maquila operations b) Investments in new source of renewable energy b) Investments in new source of renewable energy c) Economic benefit for companies in the care and use of forests d) New updated income tax law to become effective as of January 1, 2013 and it all appears that all exemptions will be gone by 2015

Tax Incentives in Latin America

Mexico

a) Maquila operations b) Tax treaties and Free Trade Agreements b) Tax treaties and Free Trade Agreements c) No tax liability on the sale of shares listed in the Mexican Stock Exchange d) Special tax treatment for investments in Mexican Companies not listed in the Stock Exchange e) Tax Benefits for the Film Industry and for the theater f) Tax Benefits to Employers that hire persons with disabilities g) Special tax treatment for Trusts and Companies that are in the business

• f acquiring or bulding real state

Tax Incentives in Latin America

h) Immediste deduction for a large percentage of investments in fixed

• assets. Except for the D.F., Guadalajara and Monterey

Nicaragua

a) Temporary Admissions System b) Export Processing Zones b) Export Processing Zones c) Incentives for new Investments in Renewable Energy d) Incentives for Tourism Industry, Forest, Construction, etc.

Tax Incentives in Latin America

Panama

a) Zona Libre de Colón b) Free Trade Zones b) Free Trade Zones c) Call Centers d) Legal Stability and Protection for Investment in various industries e) Panama Holding Company

Tax Incentives in Latin America

Paraguay

a) Maquila operations b) Incentives for new Investments b) Incentives for new Investments c) Territorial System of Taxation d) Holding Companies

Tax Incentives in Latin America

Peru

a) Stability Agreements b) Tax Treaties and Free Trade Agreements b) Tax Treaties and Free Trade Agreements c) Export Centers d) Amazons Area Incentives

Tax Incentives in Latin America

Puerto Rico

a) Manufacturing, Assembly and Services rendered to nonresidents of Puerto Rico b) Hotels and Tourism Incentives c) Financial operations Incentives d) Individuals that acquire domicile in Puerto Rico e) Tax Exemption for various industries e) Tax Exemption for various industries

Tax Incentives in Latin America

Uruguay

a) Territorial System of Taxation b) Incentives for various industries b) Incentives for various industries c) Incentives for small companies d) Customer Service Centers for nonresidents of Uruguay e) Free Trade Zones f) Call Centers in the Free Trade Zones g) Holding Companies

Tax Incentives in Latin America

Venezuela

a) Tax Treaties b) Incentives for various industries b) Incentives for various industries c) Investments into Venezuela always through a company located in a country that has signed a protection of investment agreement with Venezuela

Tax Incentives in Latin America