{"id":5784,"date":"2018-11-24T09:41:06","date_gmt":"2018-11-24T11:41:06","guid":{"rendered":"http:\/\/www.vivacquaadvogados.com\/?p=5784"},"modified":"2019-07-30T09:43:00","modified_gmt":"2019-07-30T12:43:00","slug":"foreign-investment-in-latin-america-main-risks-highlights","status":"publish","type":"post","link":"https:\/\/www.vivacquaadvogados.com\/en\/foreign-investment-in-latin-america-main-risks-highlights\/","title":{"rendered":"FOREIGN INVESTMENT IN LATIN AMERICA \u2013 MAIN RISKS (HIGHLIGHTS)"},"content":{"rendered":"

Based on a private report of a meeting of the members of Vivacqua Advogados Law Firm with a group of representatives of a Foreign Investment Fund, we summarize below some conclusions about the main risks of investing in Latin America in 2019:<\/p>\n

Argentina:<\/strong><\/p>\n

    \n
  • Unclear position of government on tax reform in an incoming election year;<\/li>\n
  • Tax policy related to high inflation rates;<\/li>\n
  • Foreign exchange effects.<\/li>\n<\/ul>\n

    Brazil:<\/strong><\/p>\n

      \n
    • President elected Jair Bolsonaro\u2019s proposal to Impose a 20% tax on dividends (currently zero);<\/li>\n
    • Brazilian authorities plan to undertake a prolonged fiscal consolidation, which includes an ambitious reform of social security;<\/li>\n
    • Tax reform proposal to substitute IPI, PIS,COFINS, ICMS, ISS by one federal \u201cVAT\u201d tax.<\/li>\n<\/ul>\n

      Chile:<\/strong><\/p>\n

        \n
      • Tax reform is expected to be introduced in 2019. Major changes on this reform are:<\/li>\n<\/ul>\n
          \n
        1. Creation of integrated corporate tax system in which double taxation of business profits (shareholders & entities) would be eliminated;<\/li>\n
        2. Reduced income tax rate (from 28% to 25%);<\/li>\n
        3. Implement a withholding tax of 10% applicable to digital services.<\/li>\n<\/ol>\n

          Mexico:<\/strong><\/p>\n

            \n
          • Newly-minted United States-Mexico-Canada Agreement (USMCA) is replacing NAFTA. This new document includes strong and effective protection of intellectual property rights;<\/li>\n
          • New government administration is expected to implement solid tax collection procedures (increase on the government tax audits);<\/li>\n
          • Mexico (OECD and G20 member) has implemented BEPS framework into its local laws and it is expected to continue to enforce BEPS action plan.<\/li>\n<\/ul>\n

            Peru and Ecuador:<\/strong><\/p>\n

              \n
            • Consistent changes in tax policy.<\/li>\n<\/ul>\n

              Venezuela:<\/strong><\/p>\n

                \n
              • Tax policy related to high inflation rates;<\/li>\n
              • Foreign exchange effects.<\/li>\n<\/ul>\n<\/div>
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