🌎 You can find different sorts of tax policy design choices in the diverse landscape of LatAm countries today. Roberto Ramos Obando recently covered in Tax Notes the Tax Justice Bill in Honduras, which was proposed by the local government to “ensure a more equitable distribution of the fiscal burden and to enhance the state’s capacity to provide public services to the people living in one of the lowest-income countries in the region and the world” (https://bit.ly/4cJSZM8). We at the Latin American Tax Policy Forum (LATPF) highlighted last year the “Law for the Promotion of Innovation and Technology Manufacturing” in El Salvador, which provides certain tax benefits and exemptions for qualifying projects in a period of up to 15 years (see more information here: https://bit.ly/3ZbfSF4). And in Brazil, tax authorities and practitioners are at the same time dealing with the implementation of the OECD – OCDE Transfer Pricing Guidelines and the secondary “leg” of the Brazilian Indirect Tax reform.
Posted on Bloomberg Tax today, the article titled “Argentina’s Tax Reforms Aim to Change the Game for Investors” and authored by Juan Manuel Vazquez and Juan Pablo Baumann Aubone describes the main features of the new Argentinian incentive regime for large investments called RIGI (“Regimen de Incentivo para Grandes Inversiones” – the statute is available in Spanish here: https://bit.ly/47denYQ). RIGI carries several tax benefits for foreign investors and it is a part of the government’s efforts to reposition Argentina in the global economy.
As explained by the authors, subnational jurisdictions in Argentina may or may not adhere to RIGI (and this is an important consideration for investors). It is also relevant to note that RIGI will be tested under the OECD – OCDE new Pillar 2 rules – if not by Argentina itself, certainly by other jurisdictions (e.g., EU, Japan, South Korea).
You can find Vazquez and Aubone’s article available here: https://bit.ly/4e7CE4O
