It is expected that by the end of 2015 a total of 42 billion electronic invoices will be processed globally. Twenty-five billion of these will be processed in Latin America according to Billentis’ Entering a New Era report.
The following are a few of the digital reforms taking place in the region:
Mexico
Mexico, along with Brazil, is one of the most developed countries in terms of the usage of electronic processes at an international level. To be in compliance in this country, companies must provide its employees electronic payslips (CFDI). In order to do so, they are required to work with an Authorised Certification Vendor (PAC).
Argentina
Argentina also requires electronic payslips, but currently only for those companies the local authorities have notified. If a company is notified, they must register through the local tax authority’s online portal. Non-compliance penalties range up to 2,000 per cent of the minimum salary paid.
Brazil
Starting September 2016, it will be mandatory for all companies to comply with e-Social regulations. E-Social is a digital platform that contains specific reporting templates aimed at guaranteeing accuracy in reporting, homogenising the way the government receives information and providing workers a way to access their details. The Brazilian Ministry of Labour is in charge of running regular audits and penalises companies for non-compliance.
Colombia
Colombia’s social ecurity payments must be made electronically through the Integrated Social Security Contribution Form (PILA). The local entity Parafiscal and Pension Management Unit (UGPP) is responsible for performing the corresponding audits and sanctioning companies if they are not complying with the set process.
Uruguay
Uruguay’s government passed an ordinance allowing companies to provide electronic payslips to their employees. However, it is not mandatory as in other countries. Companies that choose to provide electronic payslips must utilise a specific system allowing their employees to access their information remotely. Every employee must receive a unique username and password to access the approved system.
By Linda Negron, TMF Group
TMF Group is a leading provider of global business services to clients operating and investing across Asia, Africa, Europe, Middle East and the Americas. We focus on providing specialised and business-critical financial and administrative services that help our clients to operate their corporate structures, finance vehicles and investments in different locations.
It is expected that by the end of 2015 a total of 42 billion electronic invoices will be processed globally. Twenty-five billion of these will be processed in Latin America according to Billentis’ Entering a New Era report.
The following are a few of the digital reforms taking place in the region:
Mexico
Mexico, along with Brazil, is one of the most developed countries in terms of the usage of electronic processes at an international level. To be in compliance in this country, companies must provide its employees electronic payslips (CFDI). In order to do so, they are required to work with an Authorised Certification Vendor (PAC).
Argentina
Argentina also requires electronic payslips, but currently only for those companies the local authorities have notified. If a company is notified, they must register through the local tax authority’s online portal. Non-compliance penalties range up to 2,000 per cent of the minimum salary paid.
Brazil
Starting September 2016, it will be mandatory for all companies to comply with e-Social regulations. E-Social is a digital platform that contains specific reporting templates aimed at guaranteeing accuracy in reporting, homogenising the way the government receives information and providing workers a way to access their details. The Brazilian Ministry of Labour is in charge of running regular audits and penalises companies for non-compliance.
Colombia
Colombia’s social ecurity payments must be made electronically through the Integrated Social Security Contribution Form (PILA). The local entity Parafiscal and Pension Management Unit (UGPP) is responsible for performing the corresponding audits and sanctioning companies if they are not complying with the set process.
Uruguay
Uruguay’s government passed an ordinance allowing companies to provide electronic payslips to their employees. However, it is not mandatory as in other countries. Companies that choose to provide electronic payslips must utilise a specific system allowing their employees to access their information remotely. Every employee must receive a unique username and password to access the approved system.
By Linda Negron, TMF Group
TMF Group is a leading provider of global business services to clients operating and investing across Asia, Africa, Europe, Middle East and the Americas. We focus on providing specialised and business-critical financial and administrative services that help our clients to operate their corporate structures, finance vehicles and investments in different locations.
