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The Taxing Issue of Withholding Tax in Latin America
Managing withholding taxes can be a cumbersome task for corporations. This is particularly true in Latin America, where navigating the complexities requires local expertise, according to Ana Paula Maciel, Principal Tax Research Analyst at Vertex, and Ernesto Levy, Senior Leader of Global Indirect Tax at Intuit
Understanding tax regulation can be challenging at the best of times. In much of Latin America, rules around withholding taxes on B2B transactions vary so greatly it can dramatically hinder efficient business.
This fact is especially concerning when it comes to the consequences of non-compliance. For example, in Argentina, failure to pay taxes can result in hefty fines of up to 10 times the amount not paid. Effectively managing B2B transactions, therefore, is of the essence.
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