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The legal and accounting teams at Biz Latin Hub’s offices in Bolivia, Brazil, Colombia, the Dominican Republic, Ecuador, El Salvador, and Mexico reported the following regulatory updates in November 2021 that could affect your business interests.
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Bolivia
Three notable changes to Bolivia’s regulatory framework were made by the government and institutions in November.
| Regulation activity | Business outcomes |
| Decree Supreme N°4616 Published: November 10th |
Establishes conditions for the application investments’ incentives in Hydrocarbon Exploration and Exploitation. |
| Law 1407 Published: November 10th |
Plan for Economic and Social Development 2021-2025 |
| Law 1409 Published: November 14th |
Law No. 1386 of August 16th, 2021, “Law of National Strategy to Combat the Legitimation of Illicit Profits and the Financing of Terrorism” |
Brazil
One notable regulation update was introduced by the Brazilian government in November.
| Regulation activity | Business outcomes |
| Federal Decree 10854 /2021
Published: November 10th 2021 |
Rules governing labor legislation. This includes outsourcing.ThSalary, and other provisions. |
Colombia
Two notable updates to the Colombian regulatory system were made by the government and institutions recently.
| Regulation activity | Business outcomes |
| Law 2157
PublishedDate: Oct 29th 2021 |
Regulations of Habeas Data pertaining to information, financial and credit services from third-country. |
| Decree 1399
Published: September 29, 2021 |
Regulation of the tax incentives for new jobs creation |
Dominican Republic
Recently, the Dominican Republic government introduced a notable update to its regulatory framework:
| Regulation activity | Business outcomes |
| Law 338-21
Published:November 4, 2021 |
Law 338-21 amends Law 189-11 to the Development of the mortgage market and trusts. It provides that trusts established to construct low-income homes are exempt from corporate income, capital gains, and property taxes, as well as any other fees and taxes related to construction activities. |
Ecuador
One notable regulation update was made by the Ecuadorian government in November.
| Regulation activity | Business outcomes |
| For organic law Economic Development Financial sustainability Following the COVID-19 pandemic Published:November 29th 2021 |
Tax reforms that will be important in 2022. Reform and elimination of taxes |
El Salvador
El Salvador’s government, along with its institutions, introduced a notable update in November.
| Regulation activity | Business outcomes |
| Foreign Affairs Committee gives favorable verdict on Foreign Agents Law
Published:November 16th 2021 |
Congress proposed the Law on Foreign Agents in El Salvador: law would oblige any person or organization in El Salvador that carries out activities “that respond to interests, are controlled or financed, directly or indirectly by a foreigner” to register as “foreign agents”. In the event that the agency fails to register, the government can shut it down. Additionally, all registered foreign agents are prohibited from participating in activities that could compromise the stability and security of the country. |
Mexico
In November, the Mexican government and institutions made four important regulatory changes.
| Regulation activity | Business outcomes |
| Federal Income Law, Fiscal Year 2022 Published: November 12,, 2021 |
Mexico’s government projects that it will earn 12.59% more revenue in 2020 than 2021. That means they will apply stricter tax compliance inspections, as well as other income-generating mechanism. |
| Spanish translation of Income Tax Law: Amendments, Reforms, and Repeals Published: November 10th |
The previous “Tax Incorporation Regime” is eliminated and replaced with the so-called “Trust Regime” for the fulfillment of tax obligations.
Certain rules governing personal deductions can be modified or eliminated, such as those relating to onerous gifts. The Law incorporates new rules for legal representatives foreign persons. It will require supporting documentation regarding the payment of taxes by the principal. This document must be available for five years starting from the date they were filed. After the declaration is submitted, you can voluntarily accept joint and multiple liability. This will not exceed contributions the foreign principal must make and your assets should be sufficient to answer as joint obligor. |
| Spanish: Reforms, additions, and repeals of the VAT Law (LIVA). Published: November 12, 2021 |
Now, both animal and human foods will have the same 0% VAT rate. Precepts are added to define the concept of “not subject to tax”. |
| The Federation Tax Code: Reforms, additions and abrogations (CFF) in Spanish
Published: November 12, 2021 |
Some rules for issuing “Digital Tax Receipts” (Digital Invoices) are modified for both the issuer and the recipient. Some of the rules governing the inspection of tax authorities have also been modified. |
Biz Latin Hub will help you to do business in Latin America
At Biz Latin Hub, our multilingual company formationOur team of legal, recruiting, accounting and financial professionals is ready to assist you in Latin America and Caribbean business. With our complete range of back-office and market entry services, clients can rest assured that they are compliant with all current regulations and have their commercial bases covered.
Contact us nowFind out more about how to comply with regulatory requirements in Latin America and Caribbean.
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