Did you know that the current Deputy of the LVII and LIX Legislatures of the Mexican Congress Alfonso Ramírez Cuéllar is presenting a project to apply taxes to purchases in Amazon, Uber, and Airbnb? If approved, Ramirez stated e-commerce companies, carpooling platforms, and home rental platforms would be subject to the standard 16% VAT charged on other purchases in Mexico. These sudden changes in the Mexican tax regulations affected big American corporation ultimately they would need to implement adequate support.
LatamReady is always prepared for these changes because we have experience in Mexico, Brazil, Argentina, Colombia and in the rest of Latin American countries, providing the only tax compliance solutions for large corporations within NetSuite. Let’s go deeper into this.
How difficult can it be for an international company to control all its subsidiaries in Latin America?
It is a very interesting question. Many companies think that having a basic software will allow them to do all the necessary administration within their internal processes. However, one thing they don’t take into consideration is that within the Latin American region, each country has specific laws that make them very different from one another.
It is extremely important for companies that use NetSuite and want to invest in Latin America or that currently have subsidiaries in the region use a tool that allows them to make accurate tax calculations. At the end of each period, all the reports asked by the local legal institutions in charge of the tax system must be presented so that companies comply with the country’s laws and avoid any legal problems. This must be done for each of the subsidiaries in each of the countries where the large companies are present.
I see… and what do local institutions require of companies to complain to tax compliance?
Well, just as in the United States, which has the Internal Revenue Service (ISR), every country in Latin America has institutions that do the same work. However, the difference is that, for entities such as the SAT of Mexico (Tax Administration Service known as Sistema de Administración Tributaria), the documents they request cannot be sent in an Excel format as similar to the United States. In Mexico, each document counts is requested in a specific format involving electronic invoicing, e-payments, legal ledgers, withholding taxes, etc., which are mandatory not only in Mexico, but also in Brazil, Argentina, Colombia, and the rest of Latin American countries.
Which company has the experience and knowledge necessary to comply with tax compliance for companies using NetSuite within Latin America?
Since 2009, LatamReady has been the LEADING authority in the Tax Compliance space for NetSuite in Latin America. More than 150 global corporations already put their trust in LatamReady.
LatamReady SuiteApp is the best option for NetSuite users and facilitates all big companies internal process to be compliant with regulatory requirements in Latin America.
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