Category Taxation in South America

Cuba Spends Half of Budget on Social Needs

July 25, 2018 Taxation in Cuba

Cuba tax revenuesHAVANA – Cuba has spent at least half of its annual budget on social and education programmes, despite continued economic and fiscal setbacks.

Over the weekend the Finance Minister of Cuba Lina Pedraza announced that over the previous financial year, the government had spent more than half of all tax revenues on education, healthcare, and social welfare.

In total, approximately CUC 10.7 billion was spent on public health care and social welfare programs for the year, while an additional CUC 8.1 billion was spent on education on the island.
The total tax revenues for the year amounted to approximately CCU 36.9 billion.

Approximately 74 percent of all taxes collected came from the taxation of incomes of state-owned companies.

However, Cuba’s increasingly important private sector has also pa...

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Chile to Go After Online Multinationals

June 25, 2018 Taxation in Chile

Amazon tax in ChileSANTIAGO – Chile is looking to join the growing ranks of companies vying to tax online multinationals such as Uber, Netflix, and Amazon.

Late last week the Finance Minister Felipe Larrain of Chile announced that the government wants to implement new taxes on multinational digital businesses operating in Chile, in an effort to level the playing field between new digital businesses and their traditional counterparts.

Previously, the tax authorities of Chile had no mandate upon which to charge taxes to online businesses such as Spotify, Netflix, and Amazon.

The lack of taxes was due to the fact that the online businesses had no presence in the country, and therefore couldn’t be taxed.

However, no taxation methodology or rate has yet been finalized.

The Minister did state that the governm...

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Peru Enacts Sugar Tax

May 11, 2018 Taxation in Peru

can of cokeLIMA – Peru joins the list of nations levying a tax on sugary drinks.

On May 10th the government of Peru announced that it will implement significant new taxes on sugary drinks, and a handful of other products regarded as being bad for the nation’s health.

Sugary drinks with more than 6 grams of sugar per 100 ml will see a tax of 25 percent, while drinks with less sugar will see a reduced rate of 17 percent.

The tax will apply not only to sugar-sweetened beverages, non-alcoholic beers, and juice drinks.

Exemptions from the new tax will be granted to pharmaceutical drinks and enriched milk products aimed at mothers and babies.

Similar tax hikes will also be enacted on alcoholic drinks, tobacco products, and gasoline.

The new measures are aimed at combating the rising instances of obesi...

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Mossack Fonseca Closing Down

March 15, 2018 Taxation in Panama

Mossack FonsecaPANAMA CITY – The scandal behind the Panama Papers has now brought down the firm at the centre of the controversy.

On March 14th the infamous law firm at the centre of the Panama Papers scandal, Mossack Fonseca, announced that they are ceasing their operations.

The Panama Papers scandal revolved around a large collection of documents which were stolen and leaked to media and investigative journalists, which detailed the clients of the firm, and how they used offshore structures to hide their wealth and assets.

In a statement, the firm said: “The reputational deterioration, the media campaign, the financial circus and the unusual actions by certain Panamanian authorities, have occasioned an irreversible damage that necessitates the obligatory ceasing of public operations at the end of the...

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Argentina’s Gambling Tax An Utter Flop

February 2, 2018 Taxation in Argentina

gambling taxBUENOS AIRES – Argentina’s online gambling tax has seen a spectacular failure, having brought in a total of ARS 0 during the course of 2017.

Argentina’s online gambling tax not only failed to bring in the revenues expected by the government, but also failed to raise any money at all in 2017, according to new information released in the local press.

From January 1st 2017 all online gambling activity of taxpayers in Argentina was subject to a federal tax of 2 percent.

The tax was meant to be collected by credit card issuers when a deposit was detected into the account of a gambling website, regardless of whether the operator was based in Argentina or not.

However, the tax has so far failed to raise any tax revenues as all payments into the gambling websites moved away from credit card pa...

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