As countries like Mexico, Argentina, and Brazil continue to grow in economic influence, operating in Latin America can be a lucrative move — provided, of course, that organizations stay compliant with a complex array of tax laws. In particular, withholding tax poses a serious challenge for businesses in these countries, and one wrong move can result in steep financial penalties.
In this article published in World Finance, featuring Latin American tax experts Ana Paula Maciel of Vertex and Ernesto Levy, Senior Leader of Global Indirect Tax at Intuit, you’ll learn what makes withholding so complex in several Latin American countries, including:
- Involvement of multiple levels of government (e.g., federal, provincial, and municipal)
- Complicated calculation processes and exemptions
- Rapidly changing tax legislation
What do businesses operating in Latin America need to do to stay compliant and avoid costly fines? Read this article for a deeper understanding of the challenges, and how you can manage withholding tax complexity.