There have been some interesting taxation developments in Central and South America since the turn of the year, specifically in Mexico City and Paraguay.
Mexico City’s Congress has enacted a plan to levy a 2% tax, effectively a type of Digital Services Tax (DST), on the commissions received by online marketplaces. The funds raised will go towards Mexico City’s infrastructure.
Paraguay, meanwhile, has revealed a plan to impose an effective 4.5% non-resident income tax on a portion of revenues earned by foreign digital businesses from customers based in Paraguay.
Source Vertex
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