Regulation and taxes in Latam

Doing Business Of Telecomunications In Latam

Regulation

Regulation:

In general, at the moment, the different OTT services are not regulated in Latin America:
  • The access to OTT companies’ services is protected as a part of the promotion, protection and use of internet services Human Rights.
  • In the region, Public or Government authorities do understand that each OTT service has certain particularities that make them different from the other services provided by OTT companies, this is, they are differentiated products.
  • Since the services offered by the OTTs use the access to networks via internet, they, along with the Internet, share the network neutrality principle which is recognized and obeyed by all South American Law.
  • National Governments in Latin American countries by promoting the investment of OTT companies in their countries, allow that the free of speech, free access to culture and to the information media be encouraged, thus being consistent with the principles of the information society and so, adding wellbeing to the society.
  • There are robust laws regarding copy right protection and promotion of the publicity. The intellectual property of the contents and the compilation and treatment of user´s personal data (privacy and safety) are also key aspects that region laws protect.
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Taxes in the region:

In each one of the countries in the region the following percentages of tax on incomes exist and they are applied to the contributors:

  • Colombia: 31% (FY 2021) and 30% (FY 2022 and Subsequent)
  • Peru: 29.5%
  • Chile: 27%
  • Argentina: 25%
  • Brazil: 34 %

Sales Tax rates are as following:
  • Colombia (IVA): 19%
  • Peru (IGV): 18%
  • Chile (IVA): 19%
  • Argentina (IVA): 21%
  • Brazil (ICMS): In the State of Sao Paulo: 25% and in RJ: 32%


Sales tax is calculated on those incomes that are known to be delivered and used all over the National Territory, regardless the customer be or not present in the country.

Billing of the services demands the authorization of each country National authorities, so invoices, Payment receipts and/or Invoices for Tax Purposes can be emitted in accordance with the rules in each country.

Foreigners, foreign companies must deliver and pay their income tax on their incomes coming from a national source in each country.

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