For companies, tax codes can be one of the most intimidating factors when assessing whether to jump into the Latin American market. The diversity of tax systems in the region, plus language and cultural barriers, can turn a process which is already difficult enough into a bureaucratic nightmare.
As is the case with other issues in Latin America, there’s enough variety to make your head spin. Tax codes are no different. Each country has its own particular taxing system, with its own perks and disadvantages which should be taken into account when eying a possible incursion into the market.
The following infographic aims to simplify that process. It provides a summary of tax codes in some of Latin America’s main markets, classifying them according to their “intimidation factor”. Each country is put into one of five color-coded categories (Just chill, Be calm, Be cautious, Be afraid and Be very afraid) which determine how burdensome paying corporate taxes can be.
The classification is based on the last edition of the World Bank’s Doing Business Report. You can find a more detailed breakdown of Latin America’s (and other regions’) tax codes here.