The Tax Authority (Superintendencia de Administración Tributaria, SAT) has announced a tax bill introducing anti-avoidance measures to battle VAT and corporate income tax evasion. Some of the most important measures proposed are the following:
- introduction of transfer pricing to transactions between local related parties.
- amending and clarifying regulations regarding non-deductibility of costs and expenses.
- amending VAT withholding regulations.
- modernization of audit procedures; and
- updating…