Description
Using Treaties and Holding Companies for Latin American Tax Planning: Second Edition will help you navigate treaty planning in the dynamic Latin American marketplace. You'll find details on tax consolidation regimes and holding companies as investment vehicles. Plus you'll find insight into technical assistance as well as royalty and service payments.
Plus, you'll find answers and insights to help you take advantage of tax treaties and save significant tax costs, such as:
How can treaty benefits be used depending on the type of functions a company is performing, such as manufacturing, services, a combination, or distribution?
What types of border payments may be impacted by treaties and with whom, such as third parties, related parties? Financing payments? Royalties?
What is the importance of where the Latin America company is on the corporate organization chart?
Which jurisdictions are the most attractive for treaty planning and for locating holding companies?
If you need to minimize your tax burden for your Latin American operations, you can't afford to miss out on Using Treaties and Holding Companies for Latin American Tax Planning.
OVERVIEW
Latest Strategies in Treaty Planning: Interview with John Salerno of PricewaterhouseCoopers
Interview Conducted By Gary Brown and Scott Studebaker.... page 8
Cross Border Financing Alive and Well, but Tax Compliance Tightens in Latin America: Interview with
Miguel Valdés (Machado & Associates)
Interview Conducted By Gary Brown and Scott Studebaker...page 19
Managing the Withholding Tax Burden in Latin America
Jorge Gross, John A. Salerno, and Maria J. Bel (PricewaterhouseCoopers)...
page 27
ARGENTINA
Tax Treaties of Argentina
Miguel Valdés (Machado Associados Advogados e Consultores) and Paul Tadros...page 41
Protocol Amends Argentina-Switzerland Treaty: Taxation of Royalties
Leandro M. Passarella (Estudio Garrido-Abogados)...page 47
BRAZIL
Tax Treaties of Brazil
Miguel Valdés, Amanda De Paoli (Machado Associados Advogados e Consultores) and Paul Tadros...page 53
New Interpretation Given to Brazil’s Double Tax Treaties with Korea and Spain in Light of the Recent
Double Tax Treaty with Israel
Antonio Amendola (Felsberg e Associados)...page 57
The Double Tax Treaty between Brazil and Israel Enters into Force
Antonio Amendola (Felsberg e Associados)...page 59
Planning Issues Associated with Brazil’s Permanent Establishment Concept
Frederico Carvalho (Deloitte Touche Tohmatsu Consultoria Contabil e Tributaria SIC Ltda)...page 61
CARIBBEAN
Barbados and the U.S. Sign Second Protocol to the 1984 Income Tax Treaty
Paul Tadros (DSN Consultants, Inc.)...page 67
The Income Tax Treaties of Barbados, Jamaica and the Republic of Trinidad and Tobago
Paul Tadros (DSN Consultants, Inc.)...page 73
CHILE
The Income Tax Treaties of Chile
Miguel Valdés (Machado Associados Advogados e Consultores) and Paul Tadros....page 89
Status of the Chilean Tax Treaty Network
John Salerno and Gracia Curtze (PricewaterhouseCoopers LLP)...page 93
COLOMBIA
Colombia: Modifications to the Andean Pact Treaty
Carlos Chaparro and John Salerno (PricewaterhouseCoopers LLP)...page 101
MEXICO
The “New” Concept of Business Profits under the Mexican Income Tax Law and the Effect to Treaties for the
Avoidance of Double Taxation
Edgar Klee MüDespacher (Ortiz, Sainz y Erreguerena, S.C.)...page 107
New Commentaries to the OECD Model Convention
Jose Luis Fernandez and Layda Carcamo (Chevez, Ruiz, Zamarripa y Cia, S.C.)...page 113
Australia-Mexico Tax Treaty Enters into Force
Carlos Gradwohl and John Salerno (PricewaterhouseCoopers LLP)...page 119
New Canada-Mexico Tax Treaty Published in the Official Gazette
Fred Barrett (PricewaterhouseCoopers LLP)....page 121
Tax Breaks Improve Trade Relations: The Brazil-Mexico Double Taxation Convention
Luciana Rosanova Galhardo, Giancarlo Chamma Matarazzo and Felipe Barbosa Rocha (Pinheiro Neto Advogados)... page 123
Back to Back Loans and Tax Treaties in Mexico
Pedro Arias (Paulino Olavarrieta, S.C. Abogados)...page 127
Tax Treatment of Interest Payments Made to Foreign Residents
Rene Cacheaux and Miriam Name (Cacheaux, Cavazos & Newton, L.L.P.)...page 139
Brazil-Mexico Double Taxation Treaty Enters into Effect
Pinheiro Neto Advogados...page 141
U. S.-Mexico Mutual Agreement on Pass-Through Entities
Jaime Rojas-Merino and Luis Adrián Jiménez (Baker & McKenzie)...page 143
New Rule to Clarify Permanent Establishment Limitations on Mexican Maquiladora Operations
Fred Barrett and John A. Salerno (PricewaterhouseCoopers)...page 147
The Role of Favorable Commentaries in the Interpretation of Tax Treaties
Pedro Arias (Paulino Olavarrieta, S.C. Abogados)...page 149
The New Tax Treaty Between Canada and Mexico and Its Potential Effects on U.S. Transactions
Juan Angel Becerra (JAB Consulting Group, S.C.)...page 157
An Overview of the Current Most-Favored-Nation Clauses in the Tax Treaties Concluded by Mexico: Part I
Mauricio Ambrosi and Paul Kavanagh (Turanzas, Bravo & Ambrosi)...page 165
An Overview of the Current Most-Favored-Nation Clauses in the Tax Treaties Concluded by Mexico: Part II
Mauricio Ambrosi and Paul Kavanagh (Turanzas, Bravo & Ambrosi)...page 175
VENEZUELA
Tax Treaties of Venezuela
Miguel Valdés, Amanda De Paoli (Machado Associados Advogados e Consultores) and Paul Tadros...page 185
Venezuela-Spain Double Taxation Treaty Published
Ronald E. Evans (Baker & McKenzie)...page 191
The Venezuela-Canada Double Tax Treaty Enters Into Force
Carlos Fernández Smith and Leopoldo Escobar (Macleod Dixon)...page 195
Venezuela Withdraws from the Andean Community and G-3 to Join Mercosur
Mark Ludwig and Denise Coutinho (PricewaterhouseCoopers)...page 199
HOLDING COMPANIES
The Use of Holding Companies for Investments into Latin America
Jorge Gross and John Salerno (PricewaterhouseCoopers LLP)....page 205
Mexico’s New Controlled Foreign Corporation Tax Regime No Longer Applies Exclusively to Tax Haven
Countries
Jaime González-Béndiksen and John A. McLees (Baker & McKenzie)...page 215
U. S. Multinationals Risk Losing Tax Deferral: “Grandfather Protection at Issue for S.A.’s in Certain Latin
American Countries”
Keith Martin (Chadbourne & Parke LLP)...page 227
Tax Havens May Sometimes Be Useful for Mexican Transactions
Jaime González-Béndiksen (Baker & McKenzie Abogados, S.C.)...page 229
Issuance of Administrative Rules Regarding Controlled Foreign Corporation’s Regime
Pedro Ramírez (Turanzas, Bravo y Ambrosi, S.C.) ...page 233
The Chilean Holding Company Regime: An Update and Summary of Practical Considerations
John Salerno and Julian Vasquez (PricewaterhouseCoopers)...page 237
The Tax Consolidation Regime
Jesus Alvarado-Nieto (Baker & McKenzie México, S.C.)...page 243
REGIONAL
Central American Free Trade Agreement Deepens North American Integration
Mark Ludwig (PricewaterhouseCoopers)...page 251
TECHNICAL ASSISTANCE, ROYALTY AND SERVICE PAYMENTS
Clarifications Regarding Royalty and Service Payments Under the Brazil-Spain Tax Treaty
John Salerno and Eduardo Pupo (PricewaterhouseCoopers LLP)...page 259
Interpreting Technical Assistance Services Under Mexican Tax Law
Juan Carlos Ruiz Sanchez (Baker & McKenzie)...page 261
Taxation of Software Payments
Jaime González-Béndiksen (Baker & McKenzie)...page 267
Royalties and Technical Services: Income Tax Withholding Rate Reduction Under the Brazil-Spain Tax Treaty
Eduardo Pupo and John Salerno (PricewaterhouseCoopers LLP)...page 277
Katherine Dimancescu
WorldTrade Executive
WorldTrade Executive Inc. (WTE) provides business, legal, and financial executives the advice they need to operate successfully in international markets. Leading executives from around the world rely on WTE’s newsletters, special reports and consulting expertise to stay on top of tax, regulatory and economic developments affecting their firms and industries. The success of these publications has enabled WTE to build an unsurpassed network of in-country advisors with the contacts and know-how to track down specific company and industry data. WTE’s editorial contributors are top international lawyers, accountants, and company managers.. Articles are tailored for a sophisticated audience of international lawyers, accountants, and business managers, and provide practical solutions to the real problems faced by corporate decision-makers. WTE brings you the strategies that your competitors and colleagues use to succeed in international transactions.
