Comparing Special Regimes for Small Businesses in Latin America

In today’s article we are going to talk about the special regimes for small businesses in Latin America.

Argentina – Régimen Monotributista

In Argentina, both individuals and companies are subject to a worldwide taxation system. However, anyone who falls within certain income limits and who works in trade, sales or services can take advantage of the simplified “Régimen monotributista”.

As of June 2024, the categories cover incomes from up to ARS 6,450,000 (~USD 6,770) to ARS 68 million (~USD 71,000). In addition to income, the company’s electricity consumption is considered. The tax amounts range from ARS 3,000 (~ USD 3.15) to 735,000 (~ USD 771).

Securities trading, financial investments and corporate investments are excluded. In these cases, the general tax system applies, with corporate income tax and a value added tax of 21%.

Bolivia – Simplified Tax System (RTS)

In Bolivia, the “source of income” principle applies: Only income generated in the country is taxed, regardless of the nationality or domicile of the parties involved.

The simplified tax system (RTS) is aimed at small local traders in specific sectors, such as retail, shopkeepers, and artisans, with an annual turnover of no more than BOB 184,000 (~USD 26,500). Tax rates vary by category, based on the capital employed for the activity, and range from $6 to $29, paid every two months.

However, most companies fall under the general tax system with a 13% VAT and a 25% income tax. Additional factors may be added in certain industries, such as mining, banking, and insurance.

Brazil – Simples Nacional

In Brazil, taxation is based on the global principle, similar to Argentina. There are three main tax regimes: “Simples Nacional”, “Lucro Real”, and “Lucro Presumido”.

Simples Nacional is a simplified tax system for small and micro-enterprises that facilitates the monthly payment of taxes and social security contributions. It combines taxes such as ISS, PIS/PASEP, Cofins, IRPJ, IPI, CPP, CSLL and ICMS into a single payment.

To qualify for Simples Nacional, shareholders must be tax resident in Brazil and the company must have a maximum annual gross revenue of BRL 4,800,000.00 (~USD 860,000).

Branches of foreign companies, cooperatives (except consumer cooperatives) and companies in certain industries, such as automobile manufacturing, wine production, and power generation, are excluded from this system.

The tax rates in the Simples Nacional vary depending on the economic activity and gross sales of the company. They are divided into five categories:

• I – Trade: Tax rate from 4% to 19%
  • Income limit: BRL 180,000.00 (~USD 32,500) to BRL 3,600,000.00 (~USD 650,000)
• II – Industry: Tax rate from 4.5% to 30%
  • Income limit: BRL 180,000.00 (~USD 32,500) to BRL 4,800,000.00 (~USD 870,000)
• III – Services (maintenance, accounting, schools): Tax rate of 6% to 33%
  • Income limit: BRL 180,000.00 (~USD 32,500) to BRL 4,800,000.00 (~USD 870,000)
• IV – Services (surveillance, construction, legal): Tax rate of 4.5% to 33%
  • Income limit: BRL 180,000.00 (~USD 32,500) to BRL 4,800,000.00 (~USD 870,000)
• V – Services (auditing, journalism, technology, advertising): Tax rate of 15.5% to 30.5%
  • Income limit: BRL 180,000.00 (~USD 32,500) to BRL 4,800,000.00 (~USD 870,000)

For large companies, the fixed corporate income tax rate is 15% on the annual taxable profit, plus surcharges and social security. In the Lucro Real model, the total tax burden can reach up to 34%.

Chile – Pro-SME regime – Pequeñas y Medianas Empresas (general or transparent)

In Chile, individuals can be exempt from taxation on foreign income for up to three years. After this period, the worldwide taxation system applies.

Small businesses can choose between the general or transparent Pro-PME regime. In the general regime, owners must be resident in the country and have an average turnover of up to CLF 75,000 (about 3 million USD) in the last three years or initial capital of up to CLF 85,000 (about 3.5 million USD).

The transparent regime is aimed at companies without a registered office in Chile and taxes them via the final taxes (additional or complementary global tax). It provides for PPM rates of 0.2% for income up to CLF 50,000 and 0.5% for higher incomes. The company itself does not pay corporate income tax (IDPC), but the shareholders are taxed on the profits they withdraw.

The general Pro-PME regime has a corporate income tax (IDPC) rate of 25%.

These regulations are more advantageous compared to the general semi-integrated system that applies to large companies and has an income tax rate of 27% and a VAT of 19%.

Costa Rica – Régimen Simple de Tributación

In Costa Rica, the tax system is based on the territoriality principle, which means that only income generated in the country is taxed. As mentioned in our article on residency in the country, companies and customers abroad can avoid paying taxes in Costa Rica.

However, if you establish your business in Costa Rica and generate income locally, there are tax advantages for small and micro-enterprises. While the general corporate tax rate is 30%, small business owners who opt for the simplified system can rely on lower rates between 1% and 5% depending on their business activities.

To be eligible for this system, your business must show annual purchases of less than 186 base salaries (about USD 128,000 according to the 2024 minimum wage) and have fixed assets of no more than 350 base salaries (about USD 240,500 in 2024). Furthermore, the company must not employ more than five people.

El Salvador

El Salvador, a paradise for crypto investors, applies the territoriality principle to taxation. This means that if your business income is generated abroad, you are exempt from taxation.

However, unlike other countries in Latin America, El Salvador does not offer special tax regimes for small and micro-enterprises. If you start a business that generates local income, you will generally be taxed at 30%, similar to large corporations.

However, there is a reduced corporate tax rate of 25% for companies with taxable income of up to USD 150,000 per year, which is applied to total sales.

Ecuador – Régimen Simplificado para Emprendedores y Negocios Populares (RIMPE)

In Ecuador, resident companies are taxed on their worldwide income, while non-resident companies only pay tax on Ecuadorian-source income.

Since January 1, 2022, the simplified regime RIMPE has offered reduced tax rates for resident small and micro-enterprises. Individuals with annual sales of up to USD 20,000, known as “empresas populares,” as well as entrepreneurs, whether individuals or legal entities, with annual income between USD 20,001 and 300,000, are subject to a corporate income tax rate of 0 to 2%. This is significantly lower than the general tax rate for large companies, which is 22, 25 or 28%, depending on the shareholder structure.

Popular companies pay taxes as follows:

• Income limits from USD 2,500 to 5,000: Tax to be paid is USD 5.
• Income limits from USD 5,000 to 10,000: Tax to be paid is USD 15.
• Income limits from USD 10,000 to 15,000: Tax to be paid is USD 35.
• Income limits from USD 15,000 to 20,000: Tax to be paid is USD 60.

On the other hand, entrepreneurs registered with RIMPE pay:

• Income limits from USD 0 to 50,000: tax on the base amount is USD 60, marginal tax rate is 1%.
• Income limits from USD 50,000 to 75,000: tax on the base amount is USD 360, marginal tax rate is 1.25%.
• Income limits from USD 75,000 to 100,000: tax on the base amount is USD 672.50, marginal tax rate is 1.5%.
• Income limits from USD 100,000 to 200,000: tax on the base amount is USD 1,047.50, marginal tax rate is 1.75%.
• Income limits from USD 200,000 to 300,000: tax on the base amount is USD 2,797.52, marginal tax rate is 2%.

However, activities in construction, urban development, transportation (except taxis), agriculture, sale of fuels, hydrocarbons, mining, petrochemicals, laboratories, finance, and insurance are excluded from the RIMPE.

Guatemala – Régimen Pequeño Contribuyente

In Guatemala, corporate income tax is also based on the territorial principle, so that only income of Guatemalan origin is taxed. Companies are considered to be resident if they are incorporated under Guatemalan law, have their tax domicile in the country, or operate as branches of foreign companies.

The Guatemalan tax system offers three main regimes:

• General Profit Regime: A corporate income tax rate of 25% on the net taxable income of large companies and a solidarity tax of 1% on total assets or gross sales.
• Optional Simplified Regime: With no turnover limit, companies pay a 5% income tax on gross income up to GTQ 30,000 (USD 4,000) and 7% on the amount exceeding that value, plus 12% VAT.
• Regime for small taxpayers: This regime is aimed at natural or legal persons with a tax identification (NIT) in the country who work as small business owners or freelancers and have an annual income of up to GTQ 150,000 (~USD 20,000). The tax burden is only 5% VAT on the income earned.

Haiti

Haiti is not exactly an attractive destination for business. In addition to the lack of infrastructure, corporate income tax is levied at a flat rate of 30%, with no special tax breaks available.

All companies in the country are therefore required to register with the Haitian tax authorities and submit their annual financial statements within three months of the end of the financial year.

Honduras – Ley de Apoyo a la Micro y Pequeña Empresa

In Honduras, only income generated in the country is taxed. The general corporate tax rate is 25% on net profits, with a 15% VAT.

Small and micro-enterprises that are newly established, licensed and have an annual gross income of less than NHL 5,000,000 (~USD 202,000) can benefit from tax exemptions under the “Ley de Apoyo a la Micro y Pequeña Empresa”. These include exemptions from income tax, property tax, registration, and municipal taxes for three years. However, a 15% VAT is applied to the trade in goods and services.

Companies that fall under the simplified VAT system (“Régimen Simplificado del Impuesto sobre Ventas”), with an annual turnover of less than NHL 250,000 (~USD 10,000) and only one location, pay a reduced tax rate of 12%.

Colombia – Régimen Simple de Tributación (RST)

Colombia not only impresses with its low cost of living, but also with its tax advantages for small and micro-enterprises. Despite the worldwide taxation system, which levies both domestic and international income, the country offers a surprisingly low tax burden through the “Régimen Simple de Tributación” (RST).

This system enables simple tax processing through a single payment, similar to the system in Argentina and Brazil.

To qualify for the RST, the gross income of the previous year must be less than UVT 100,000 (Unidad de Valor Tributario– in 2024 about COP 47,065, or less than USD 1,130,500) and the shareholders must be natural persons residing in Colombia.

This Régimen Simple de Tributación is not available for foreign companies, financial institutions, recently restructured companies (last 5 years), and certain industries such as electricity, automotive, fuels, and weapons.

If the requirements are met, corporate income tax rates in the RST are significantly lower than the 35% for large companies and range from 1.2% to 8.3% —depending on the annual gross income and the company’s activity.

• Small shops, mini-markets, beauty salons:
  • Income threshold: UVT 0 to 100,000
  • Tax rates: 1.2% to 5.6%
• Wholesalers, retailers, technical services:
  • Income threshold: UVT 0 to 100,000
  • Tax rates: 1.6% to 4.5%
• Sale of food and transportation activities:
  • Income threshold: UVT 0 to 100,000
  • Tax rates: 3.1% to 4.5%
• Education, health and social assistance:
  • Income threshold: UVT 0 to 100,000
  • Tax rates: 3.7% to 5.9%
• Liberal professions, consulting and intellectual services:
  • Income threshold: UVT 0 to 100,000
  • Tax rates: 7.3% to 8.3%

Cuba – MiPymes

Cuba is certainly not the ideal place to start a business, but it is included in this list because of its location in Latin America.

There are no differentiated tax systems there. Small and micro-enterprises are subject to the same obligations as large corporations, including:

• Profit tax: 35%, payable quarterly with annual adjustment.
• Value added tax/service tax: 10% on monthly income, payable monthly.
• Tax on the use of labor: 5% on wages, payable monthly.
• Contribution to social security: 14% on wages, of which 12.5% goes to the state and 1.5% to social services.

Mexico – Régimen Simplificado de Confianza (RESICO)

In Mexico, residents are taxed on their worldwide income. The standard corporate income tax rate for large companies is 30%, but this can be reduced for sole traders and micro, small and medium-sized companies that participate in the “Régimen Simplificado de Confianza” (RESICO).

RESICO applies a progressive tax rate of 1.0% to 2.5% to businesses with tax residence exclusively in Mexico and annual sales of up to MXN 3.5 million (~USD 177,000 as of August 2024). These rates apply to the activities of independent professionals, rentals, and the agricultural, livestock, fishing, or forestry sectors. The system can include income tax, VAT, and other taxes in a single payment.

The progressive tax rates are applied to income as follows:

• Up to MXN 300,000 (~ USD 15,000): 1%
• Up to MXN 600,000 (~ USD 30,000): 1.10%
• Up to MXN 1,000,000 (~ USD 50,000): 1.5%
• Up to MXN 2,500,000 (~ USD 127,000): 2%
• Up to MXN 3,500,000 (~ USD 178,000): 2.5%

Residents abroad with a permanent establishment in the country, shareholders of Mexican companies (except participants in real estate trusts) and credit institutions under the general regime are not eligible for RESICO.

To qualify for the simplified regime, a personal application is required —which can take 2 to 6 weeks depending on the responsible office.

Nicaragua – Régimen Especial de Estimación Administrativa para Contribuyentes por Cuota Fija

In Nicaragua, taxation is based on the territoriality principle, which means that only income earned in the country is subject to income tax. All companies, regardless of their size, may therefore be subject to the following taxes:

• Income tax: 30% on income earned in Nicaragua, payable through monthly declarations.
• Sales tax: 15%
• Minimum tax: A monthly payment of 1% to 3% on the income earned during the fiscal year.

There is a special regime, the “Régimen Especial de Estimación Administrativa para Contribuyentes por Cuota Fija”, which includes income tax and sales tax at a fixed rate of NIO 60.00 (~USD 1,600) to NIO 150.00 (~USD 4,000) depending on the inventory of small traders. However, this regime is intended exclusively for natural persons and does not include companies.

Panama – Régimen Especial de Impuestos sobre la Renta

In Panama, it is possible to avoid paying taxes altogether, as the country only taxes income earned directly in Panama. However, anyone who earns income in the country, whether a resident or not, is subject to a fixed tax of 25% for large companies.

Since December 2020, there has been a special income tax system with staggered tax rates for micro, small and medium-sized companies:

• Up to PAB 11,000 (Balboa, Panamanian currency): 7.5%
• PAB 11,000.01 to 36,000: 10%
• PAB 36,000.01 to 90,000: 12.5%
• PAB 90,000.01 to 150,000: 15%
• PAB 150,000.01 to 350,000: 20%
• PAB 350,000.01 to 500,000 : 22.5%

To qualify for this special tax regime, the company must be registered in the commercial register “AMPYME,” have an annual gross turnover of up to PAB 500,000 and have the shares registered in the name of natural persons. The Panamanian currency, the Balboa, is directly linked to the US dollar, which means that 1 Balboa is exactly equivalent to 1 USD.

Paraguay – RESIMPLE and IRE SIMPLE

Paraguay is often mentioned as one of the leading tax havens, and rightly so. The country has a territorial tax system that only taxes income generated within Paraguay. Therefore, one can live tax-free in Paraguay if the income comes from abroad.

Even if one decides to generate local income, the tax burden is significantly lower than in many other countries. For local income, Paraguay uses the “10-10-10” system with three main taxes (VAT, income tax on individuals and corporate income tax), each of which is taxed at a rate of 10%. Large national companies thus only pay 10% income tax as long as the profit does not exceed 500 million Guaranis (approx. USD 66,000).

For sole traders with an annual gross income of up to PYG 80,000,000 (about USD 10,500), there is the simplified system RESIMPLE. Here, the income tax is paid monthly on the basis of the previous year’s turnover:

• Up to PYG 20 million (~USD 2,500): PYG 60,000 (~USD 8) per month
• PYG 20 to 40 million (~USD 5,000): PYG 120,000 (~USD 15) per month
• PYG 40 to 60 million (~USD 7,800): PYG 180,000 (~USD 23) per month
• PYG 60 to 80 million (~USD 10,500): PYG 240,000 (~USD 31) per month

Medium-sized companies with an annual gross income of up to PYG 2,000,000,000 (approx. USD 262,500) can use the simplified IRE SIMPLE system, which provides for a fixed rate of 10%. Under this regime, taxpayers can choose whether to pay the tax based on actual or estimated income, taking the option that results in the lower amount.

To determine net income, the tax authorities consider the lower of either the positive difference between total revenues and expenses directly related to the taxable activity or 30% of annual gross sales.

Peru – RER and RMT

In Peru, taxation is applied on a global basis, which means that companies based in the country may be subject to general taxation with a corporate income tax rate of 29.5% on their worldwide net income, and also to the general sales tax (IGV) of 18%.

However, there are two special tax regimes for small and micro-enterprises that offer reduced rates and tax incentives: the “Régimen Especial de Renta” (RER) and the “Régimen MYPE Tributario” (RMT).

Régimen Especial de Renta (RER): For small businesses in sectors such as trade, agriculture, industry and services, the RER is a simplified tax system that offers a reduced tax rate and less stringent accounting requirements.

Requirements:

• Annual net income or acquisition value must not exceed PEN 525,000  (approx. USD 140,000).
• The value of fixed assets must not exceed PEN 126,000 (approx. USD 38,000) excluding vehicles and goods.
• Maximum 10 employees per shift.

Applicable taxes:

• General sales tax of 18%.
• Monthly income tax: 1.5% on net income.

Some activities such as financial services, large-scale mining and bulk imports are not eligible for the RER.

Régimen MYPE Tributario (RMT): This system was created especially for small and micro-enterprises based in Peru that generate income from the third category, i.e. from commercial, industrial, mining, and other business or entrepreneurial activities.

Companies whose annual income does not exceed UIT 1,700 (Uniform Tax Amount, in 2024 corresponds to PEN 5,150), or about PEN 8.755 million or USD 2.3 million, can benefit from this system, provided that they are not branches of companies incorporated abroad.

Applicable monthly income tax:

• Up to UIT 300 (PEN 1,545,000.00 ~USD 413,000): 1%
• Over UIT 300: 1.5%

In addition, the general sales tax of 18% applies.

The RMT also allows you to deduct expenses related to your business, meaning you only pay tax on the year-end profit. To do this, an annual affidavit is required, in which the following rates are applied:

• Profit up to UIT 15 (about PEN 77,250 or ~USD 20,500): 10% on profit.
• Profit over UIT 15: 29.5% on profit.

Dominican Republic – Régimen Simplificado de Tributación (RST)

In the Dominican Republic, companies are only taxed on the income generated in the country. The general rule for companies with high turnover is an income tax of 27% and a value added tax of 18%.

However, since 2019, the “Régimen Simplificado de Tributación” (RST) has offered an alternative for individuals and legal entities operating in the country. This system is aimed at:

• Revenues: Companies in the service sector, in the production of goods and in independent trade, with an annual gross income of up to DOP 11,126,189.96 (~USD 187,000).
• Purchases: Individuals or legal entities involved in the trade of goods whose total purchases and imports do not exceed DOP 51,154,896.37 (~USD 860,000).

To qualify for the RST, it is necessary to be registered in the Dominican Republic Tax Registry with a registration number (RNC). In addition, all partners or shareholders must be residents of the country.

The income tax in the RST for legal entities in the income modality is determined by applying a rate of only 7% to the annual gross income, which covers both the income tax (ISR) and the tax on the transfer of goods and services (ITBIS).

In the purchase modality, the rates vary between 15% and 25% based on the purchase amount of the previous year.

Uruguay – SAS or Monotributo

In Uruguay, both resident and non-resident companies with a permanent establishment are taxed only on the income earned in the country according to the territorial principle. The corporate tax rate for large companies is generally 25%.

However, small companies can be structured as SAS (Sociedades Anónimas Simplificadas) and pay between 3.3% and 12% tax on gross sales up to an annual limit of USD 500,000.

There is also the option of the “monotributo”, a simplified system for sole proprietorships with an annual income of less than 183,000 Unidades Indexadas (one UI is equivalent to UYU 6.0888 in August 2024), which is about UYU 1,114,250 or USD 27,500. This regime is also open to companies with an income below UI 305,000 —about UYU 1,857,084 or USD 46,000.

Sole proprietorships with up to one employee and companies with up to two shareholders without employees can be admitted to the monotributo.

The monotributo combines contributions for the BPS (social security) and the DGI (national taxes) and is paid directly to the Banco de Seguridad Social (BPS). The specific amounts can be viewed on the BPS website.

Venezuela

As you would expect, there is no special tax regime for small business owners in Venezuela. However, corporate tax rates are progressive, so they are often lower for small and micro-enterprises:

• 15% for income up to U.T 2,000 (VED 800)
• 22% for income over U.T 2,000 up to U.T. 3,000 (VED 1,200)
• 34% for income over U.T 3,000 (VED 1,200)

In 2024, the Unitary Tax (U.T.) was 0.40 bolivars.

Revenues from banking, financial, insurance and reinsurance operations are taxed at a fixed rate of 40%.

In addition, Venezuela levies taxes on both individuals and legal entities on income and capital gains at the global level.

In summary

• Argentina
  • Simplified Regime: Régimen Monotributista
  • Annual revenue limit: ARS 6,450,000 to ARS 68 million (~USD 6,770 to 71,000)
  • Corporate income tax (IRC) in the simplified regime: ARS 3,000 to ARS 735,000 (~USD 3 to 771)
  • General corporate tax: 25% to 35%
• Bolivia
  • Simplified regime: Régimen Simple de Tributación (RTS) (only for small local traders)
  • Annual turnover limit: BOB 60,000 to 184,000 (~USD 8,580 to 26,500)
  • Corporate income tax (IRC) in the simplified regime: from BOBO 47 to 200 (~USD 6 to 29)
  • General corporate income tax: 25%
• Brazil
  • Simplified regime: Simples Nacional
  • Annual turnover limit: BRL 4,800,000 (~USD 860,000)
  • Corporate income tax (IRC) in the simplified regime: 4% to 30.5%
  • General corporate income tax: up to 34%
• Chile
  • Simplified regime: Régimen Pró PME (general or transparent)
  • Annual revenue limit: CLF 75,000 in the last 3 years or CLF 85,000 (approx. USD 3 million)
  • Corporate income tax (IRC) in the simplified regime: Transparent: 0.2% to 0.5%, General: (IDPC) 25%
  • General corporate income tax: 27%
• Colombia
  • Simplified regime: Régimen Simple de Tributación (RTS)
  • Annual revenue limit: ~UVT 4,706,500,000 or ~USD 1,130,500
  • Corporate income tax (IRC) in the simplified regime: 1.2% to 8.3%
  • General corporate income tax: 35%
• Costa Rica
  • Simplified regime: Régimen Simple de Tributación
  • Annual revenue limit: ~USD 128,000 (as of 2024)
  • Corporate income tax (IRC) in the simplified regime: 1% to 5%
  • General corporate income tax: 30%
• Cuba
  • Simplified regime: Not available
  • General corporate income tax: 35%
• El Salvador
  • Simplified regime: Not available
  • General corporate tax: 30% in general, 25% for income up to USD 150,000
• Ecuador
  • Simplified regime: Régimen Simplificado para Emprendedores y Negocios Populares (RIMPE)
  • Annual turnover limit: USD 20,000 to 300,000
  • Corporate tax (IRC) in the simplified regime: 0% to 2%
  • General corporate tax: 22%, 25% or 28%
• Guatemala
  • Simplified regime: Régimen Pequeño Contribuyente
  • Annual turnover limit: up to GTQ 150,000 (~USD 20,000)
  • Corporate tax (IRC) in the simplified regime: 5%
  • General corporate tax: 25%
• Haiti
  • Simplified regime: Not available
  • General corporate tax: 30%
• Honduras
  • Simplified regime: Ley de Apoyo a la Micro y Pequeña Empresa
  • Annual revenue limit: NHL 5,000,000 (~USD 202,000)
  • Corporate tax (IRC) in the simplified regime: 0%
  • General corporate tax: 25%
• Mexico
  • Simplified regime: Régimen Simplificado de Confianza (RESICO)
  • Annual revenue limit: up to MXN 3.5 million (~USD 177,000)
  • Corporate income tax (IRC) in the simplified regime: 1% to 2.5%
  • General corporate income tax: 30%
• Nicaragua
  • Simplified regime: Not available for legal entities
  • General corporate tax: 30%
• Panama
  • Simplified regime: Régimen Especial de Impuesto sobre la Renta
  • Annual turnover limit: PAB 11,000.00 to 500,000.00 (~USD 500,000)
  • Corporate tax (IRC) in the simplified regime: 7.5% to 22.5%
  • General corporate tax: 25%
• Paraguay
  • Simplified regime: RESIMPLE and IRE SIMPLE
  • Annual turnover limit:
    • RESIMPLE: Up to PYG 80,000,000 (~USD 10,500)
    • IRE SIMPLE: Up to PYG 2,000,000,000 (~USD 262,500)
  • Corporate income tax (IRC) in the simplified regime:
    • RESIMPLE: PYG 60,000 (~USD 8) to PYG 240,000 (~USD 31)
    • IRE: 10% on real or estimated income
  • General corporate income tax: 10%
• Peru
  • Simplified regime: RER and RMT
  • Annual revenue limit:
    • RER: Up to PEN 525,000 (~USD 140,000)
    • RMT: Up to PEN 8,755 million (~USD 2.3 million)
  • Corporate income tax (IRC) in the simplified regime:
    • RER: 1.5%
    • RMT: 1% to 1.5%
  • General corporate income tax: 29.5%
• Dominican Republic
  • Simplified Regime: RST – Revenue/Purchases
  • Annual revenue limit:
    • Revenues up to DOP 11,126,189.96 (~USD 187,000)
    • Purchases up to DOP 51,154,896.37 (~USD 860,000)
  • Corporate tax (IRC) in the simplified regime: 7% on revenues; 15% to 25% on purchases
  • General corporate tax: 27%
• Uruguay
  • Simplified regime: SAS or monotributo
  • Annual revenue limit:
    • SAS: up to USD 500,000
    • Monotributo: values specific to each company
  • Corporate income tax (IRC) in the simplified regime:
    • SAS: 3.3% to 12%
  • General corporate income tax: 25%
• Venezuela
  • Simplified regime: Not available
  • General corporate income tax: 15% to 34%

To summarize, Latin America is not just a map with exotic countries, but also a fertile ground for small businesses that want to prosper with reduced taxes.

With only 5 out of 20 countries in the region ignoring special regimes for freelancers and small business owners, there are numerous opportunities for those who know where and how to look.

If you want to know more, book a consultation with us or get in contact with us so we can help you find the perfect business solution.