Category Taxation in South America
March 14, 2017 Taxation in Brazil
A new ruling by the Supreme Court of Brazil has enshrined the idea that digital books should enjoy the same tax treatment as their physical counterparts.
In September 2016 a debate began regarding the taxation of e-books, with some parties claiming that the digital products should not face taxation, while opponents claimed that the rules should be restricted to physical books only.
The tax breaks on books stems from legislation in Brazil which protects books from taxation as a matter of freedom of speech.
The Supreme Court has now ruled that the digital versions of books are practically indistinguishable from their physical versions, ...Read More
March 5, 2017 Taxation in Mexico
New research conducted by Shu Wen Ng, health economist and a professor at the University of North Carolina in Chapel Hill, has indicated that the recent tax on the sale of sugary beverages in Mexico has significantly cut down the consumption of such drinks.
It is estimated that in 2015 the sale of sugary drinks fell by 9.7 percent, compared to the level that the sales would have been had the tax not been enacted.
In the prior year, the consumption fell by 5.5 percent, bringing the average to the 7.6 per year over the course of the tax so far.
The tax did not have an equal effect on consumers from various socio-economic groups,...Read More
November 2, 2016 Taxation in Argentina
New information released by the tax authority of Argentina Administración Federal de Ingresos Publicos (AFIP) shows that over the 12 months ending October 2016, the level of tax revenues collected rose by 24.4 percent compared to the same timeframe in 2015.
Over the 12 months tax authorities collected a total of ARS 167.196 billion, compared to the last year’s 12 month total of ARS 134.417 billion.
The significant rise in tax collections is not the highest seen over the course of the year, as total tax collections for the 12 months ending September 2016 were 30 percent higher than in the previous year.
It i...Read More
September 7, 2016 Taxation in Cuba
HAVANA – For the first time in 50 years government workers in Cuba will pay a social security contributions.
In a recent publication the Cuban national newspaper Granma revealed that government workers in the country will soon begin paying Special Contribution to Social Security (CESS).
The new social security contribution will be levied at a rate of 5 percent for any government workers earning in excess of CUC 500 per month (approx. 18.87).
It is expected that as many as 1.5 million employees will be effected by the new levy.
The CESS would be taken directly from the wages of the employee, instead of accumulating over time to be paid annually.
The funds raised from the CESS are intended to be used to cover the cost of the country’s social security system, which already supports 1...Read More
July 6, 2016 Taxation in Mexico
MEXICO CITY – Mexico’s tax on calorie-rich foods appears to have influenced consumers’ shopping behavior, though it is not yet clear if it has improved their diets.
On July 5th the medical journal PLOS Medicine published a new article claiming that taxes on energy dense foods in Mexico led to a reduction in the purchase and consumption of such foods.
In 2014 the government of Mexico enacted a tax of 8 percent on the sale of non-essential foods with more than 275 calories per 100 grams, a move that was aimed at curbing the excessive consumption of snack foods, chips, pastries, and other foods deemed to be unhealthy.
Overall the consumption of the energy-dense foods declined by 25 grams per capita per month, equivalent to a 5.1 percent drop in consumption, compared non-taxed foods.
The new ...Read More