Setting Up a Treasury Shared Service Centre in Latin America: Pros and Cons of Key Countries Treasury Shared Service Centres (SSCs) are becoming increasingly popular for global corporations seeking to centralise their financial operations, optimise cash flow, and streamline processes. Latin America offers numerous attractive locations for SSCs, but each country has unique advantages and […]
Selecting Latin America’s SSC top location Read More »
Trapped cash in Venezuela has been a permanent hassle for treasurers, here is the latest on the subject Repatriating USD from Venezuela presents unique challenges due to the country’s complex economic landscape, foreign exchange controls, and hyperinflationary environment. While the Venezuelan government has relaxed some regulations in recent years, businesses and individuals still face significant
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Offshore loans: best practices and focus on Argentina, Brazil, Chile, Colombia and Mexico After carefully reviewing your capital structure and studying other forms of funding such as equity injection or local financing, you have finally decided that you would fund your local entity using an offshore loan. There are several challenges which require careful planning,
Latam – Alert: Offshore loans, watch for withholding taxes! Read More »
A very singular way of paying distributable profit Once distributable income has been calculated the company has the option to either pay dividends or interest on shareholders’ equity or a combination of both. Let’s take a better look at interest on shareholders’ equity or JCP (Juros sobre Capital Próprio), a very singular way of paying
Brazil – Interests on Shareholder’s equity, what is this ? Read More »
Unlocking Colombia’s currency maze: Navigating the foreign exchange regime Colombia operates under a floating exchange regime as part of its broader economic strategy to manage inflation. The Colombian Central Bank oversees currency flows and intervenes by purchasing foreign currency to maintain stability, yet generally allows the exchange market to operate freely. While businesses can move
Colombia – FX, get ready for bureaucracy ! Read More »
Regulation, beneficiaries, and payment rules As per Brazilian Corporate Law and the company’s bylaws, the company must convene an annual shareholders’ meeting no later than four months after the close of the fiscal year. During this meeting, among other agenda items, shareholders exercise their voting rights to determine the allocation of the fiscal year’s results
Brazil – Dividends are tax-free, did you know? Read More »
Calculating amounts available for distribution The Company’s Board of Directors is obligated to declare the distribution of net income from the preceding fiscal year, subject to review and deliberation by shareholders.Per Brazilian Corporate Law, net income is delineated as the fiscal year’s result, subtracting any accumulated losses from prior years, alongside provisions for income tax,
Brazil – From net to distributable profits, some maths Read More »
Deferred check is a singularity of the Argentine payment environment Deferred Payment Checks (CPD, Cheque de Pago Diferido) is a relatively common instrument for companies to finance themselves for their short-term needs. The concept is issuing a check with a nominal amount, incorporating pre-agreed payment deadlines up until maturity. Such payment amounts increase with time.
Argentina – Deferred Payment Checks, how does this works ? Read More »
But what is IOF? The IOF, or Imposto sobre Operações Financeiras (Tax on Financial Operations), is a federal tax in Brazil established in 1964 by the Brazilian government. It has national applicability and serves as a means to collect taxes associated with financial operations conducted by both individuals and companies. In essence, the IOF is
Brazil – What is IOF and strategies to pay less Read More »
