Category Taxation in South America

Cuba Looks At Social Security Contributions

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...

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Mexico’s Calorie Tax Reduces Consumption

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 ...

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Argentina Approves Tax Amnesty

June 30, 2016 Taxation in Argentina

BUENOS AIRES – The government of Argentina hopes that a newly approved tax amnesty will help pay for years of unpaid pension payments.

In a vote held on June 29th the Senate of Argentina approved a new temporary tax amnesty programme aimed at boosting tax revenues and to repay owing debts to pensioners.

The tax amnesty will allow taxpayers in Argentina to declare their previously hidden assets and funds, in exchange for lowered penalties and fees.

In order to participate in the programme, taxpayers will not only need to declare their assets, but also either make a cash payment to the government or buy bonds or make an investment which would benefit the country over the long-term.

It is expected that the declared assets will be taxed at a rate of up to 15 percent.

The funds raised from th...

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Mexico’s Sugar Tax Sees Success

January 8, 2016 Taxation in Mexico

MEXICO CITY – Despite previous doubts, Mexico’s sugar tax has reduced the consumption of sugary drinks in the country.

The sugar tax recently enacted in Mexico has been shown to have had a positive effect on consumer spending habits, with consumption of sugary beverages having fallen since the measure was put into force.

In 2014 Mexico introduced a tax of 10 percent on the sale of sugar-sweetened drinks, a move which placed Mexico at the forefront of countries introducing tax measures aimed at reducing the consumption of unhealthy foods.

According to the results of the study, the tax led to a 6 percent reduction in the sale of sugary drinks, compared to the average level of sales of the previous two years.

Further, in 2015 the level of sales was 12 percent lower than the previous level...

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Argentina to Cut Export Tax on Agricultural Commodities

December 15, 2015 Taxation in Argentina

Agricultural taxBUENOS AIRES – Argentinian farmers will soon breathe a sigh of relief, as the government aims to drop taxes on the export of agricultural commodities, though the move is raising fears that a flood of products on the market will push international prices even further.

On December 15th the newly elected President of Argentina Mauricio Macri announced that he has agreed to new tax measures aimed at easing the burdens faced by the national agriculture sector.

The President announced that the export taxes previously levied on wheat, corn, beef and sorghum will be eliminated entirely.

Currently exports on wheat and corn are set at rates as high as 23 percent.

In addition, the export tax on soybeans will be cut from a rate of 35 percent to 30 percent, with further cuts of 5 percent per year be...

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