South America: Tax

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Law No. 30-26 represents the Dominican Republic's most comprehensive tax reform in recent years, fundamentally restructuring the Tax Code with measures ranging from procedural improvements to expanded taxation on cross-border transactions. The reform introduces a temporary 30% corporate surcharge for large taxpayers, eliminates the solve et repete requirement for appeals, and significantly broadens the scope of worldwide income taxation with particular impact on technical assistance and digital services.

Chile’s tax authority issued Ruling No. 578/2026 on March 6, 2026, confirming that payments from Chilean distributors to U.S. software providers are not subject to Chilean withholding...

En apariencia, todo sale bien. El cliente obtiene su residencia, recibe su carné migratorio, abre una cuenta bancaria, incluso inicia operaciones o se instala con su familia. Sin embargo, meses después aparecen las verdaderas contingencias: obligaciones fiscales no previstas, doble residencia fiscal, observaciones por origen de fondos, problemas bancarios, dificultades para justificar ingresos o incluso bloqueos operativos que nunca fueron advertidos durante el proceso migratorio.

El Ejecutivo Federal presentó el Paquete Económico 2027 ante el Congreso de la Unión, combinando expectativas moderadas de crecimiento con un objetivo de mayor recaudación tributaria.

Brazil's Supplementary Law No. 236/2026 introduces sweeping reforms to the Brazilian Tax Code, establishing new caps on tax penalties, expanding taxpayer safeguards during audits and collection proceedings, and incorporating alternative dispute resolution mechanisms including arbitration and mediation. The legislation mandates state and local governments to align their tax procedures with these new national standards within two years or face automatic application of federal provisions.

This weekly bulletin from Mayer Brown's Brasília litigation team highlights critical cases scheduled for judgment by Brazil's Supreme Federal Court, Superior Court of Justice, and Federal Court of Accounts, alongside key legislative matters before the Chamber of Deputies and Federal Senate. The briefing covers significant legal developments spanning administrative law, environmental regulations, energy infrastructure, insurance, and tax matters that will shape Brazil's legal landscape in the coming

Una propuesta de reforma tributaria en Bogotá plantea aumentar la tarifa del Impuesto de Industria y Comercio (ICA) para el sector financiero de 14 a 21 por mil. Los gremios bancarios y fintech cuestionan el incremento, argumentando que podría trasladarse a los costos de productos financieros y afectar el acceso al crédito, mientras la Secretaría Distrital de Hacienda defiende el ajuste como una medida de capacidad contributiva.

Brazil's Supplementary Law No. 236/2026 introduces sweeping reforms to the Brazilian Tax Code, establishing new caps on tax penalties, expanding taxpayer safeguards during audits and collection proceedings, and incorporating alternative dispute resolution mechanisms including arbitration and mediation. The legislation mandates state and local governments to align their tax procedures with these new national standards within two years or face automatic application of federal provisions.

When a foreign executive extends their stay in Mexico to lead operations, negotiate terms, or direct personnel, they may inadvertently create permanent establishment exposure for their company—regardless of how many days they've spent in the country. The real risk isn't crossing the 183-day threshold; it's about where decisions are made, what authority is exercised, and whether the foreign enterprise is effectively conducting business through a fixed place or dependent agent in Mexico.

Cross-border employee assignments create distinct compliance obligations under social security coordination and income taxation frameworks. Understanding how totalisation agreements and double tax treaties operate independently—rather than interchangeably—is essential for managing assignment costs and avoiding regulatory pitfalls.

For two decades, Uruguay has been Latin America’s safe harbour for internationally mobile families: politically stable, institutionally predictable, and governed by a tax system that leaves most foreign-source income untouched. On 1st January 2026, the country recalibrated that proposition.