This guide provides an overview of the Salvadoran Value Added Tax (VAT) system. It focuses on how it affects foreign companies that do business with El Salvador. It is broad in scope and is unlikely to address the circumstances of your case. It should be interpreted as such and not as advice. Please contact a Kreston El Salvador VAT professional if you need further guidance on how VAT impacts your business.
September 12, 2023
This guide provides an overview of the Ecuadorian Value Added Tax (VAT) system. It focuses on how it affects foreign companies trading in Ecuador. It is
general in nature and is unlikely to cover the particularities of your case. It should be read as such and not construed as advice. If you would like
advice on how VAT affects your business, please contact a VAT specialist at Kreston Global Ecuador.
September 11, 2023
This guide is an overview of the Mexico’s Value Added Tax (“VAT”) system, focussed on how it affects foreign businesses trading with
the Mexico. It is general in nature and unlikely to cover the specifics of your scenario. It should be read as such and not be construed as advice. For advice as to how your business is affected by Mexico VAT please contact a Kreston Global Mexico VAT specialist.
This guide is an overview of the Costa Rica Value Added Tax (“VAT”), focusing on how it affects foreign companies doing business with/in Costa Rica.
It is general in nature and is unlikely to cover the details of your scenario. It should be read as such and not construed as advice. For advice on how your business is affected by Costa Rica VAT contact a Kreston Costa Rica VAT specialist.
Herbert M. Chain is a highly experienced auditor and is a financial expert with over 45 years of experience in business, accounting, and audit, having served as a Senior Audit Partner at Deloitte. He holds certifications from the National Association of Corporate Directors and the Private Directors Association, with knowledge of private company governance and effective risk management. He has extensive knowledge in the financial services sector, including asset management and insurance. Herb is a member of MHM’s Audit Methodology Steering Committee.
Contact Herb here
Guillermo Narvaez is a Tax Partner at Kreston FLS Mexico City Office and the Technical Tax Director, Global Tax Group, Kreston Global and member of the International Fiscal Association (IFA). Guillermo is a tax expert on international taxation, corporate taxes, transfer pricing, mergers and acquisitions, corporate reorganisations and litigation.
Within international taxation, Guillermo specialises in the analysis and interpretation of treaties to avoid double taxation applied to international transactions.
Contact Guillermo here.
September 8, 2023
In a recent article exploring global cryptocurrency accounting and tax standards in Bloomberg Tax, Herbert M. Chain, Deputy Technical Director of Kreston Global Audit Group and Shareholder, Mayer Hoffman McCann P.C., and Guillermo Narvaez, Technical Tax Director at Kreston Global Tax Group and Tax Partner, Kreston FLS, delve into the difficulties of codifying digital assets within the scope of existing accounting standards. You can read the full article on Bloomberg Tax, or read the summary below.
On September 6 2023, the Financial Accounting Standards Board (FASB) approved new rules for accounting for cryptocurrencies. The standard requires crypto assets to be measured at fair value each reporting period, while also requiring enhanced disclosures for annual and interim reports. The rules will be effective for 2025 annual reports, but may be adopted for earlier periods. The FASB expects to formally issue the standard by year-end. On the taxation front, crypto assets are considered personal property, subject to capital gains tax. The U.S. Internal Revenue Service recently proposed new regulations set to come into effect in 2026, with a focus on simplifying tax filings and curbing evasion.
The authors highlight that there is currently no unified global framework to govern cryptocurrencies due to the divergence in local criteria, with China, Japan, Canada and the EU offering no classification. The tax treatment varies from jurisdiction to jurisdiction, often classifying crypto as personal property, intangibles, or other asset classes for tax purposes. The lack of consensus extends to valuation models, though countries like the U.S., UK, and Australia propose fair value accounting.
When it comes to regulation, the global scene is diverse and regulators worldwide find themselves in a difficult position. Guidelines must be robust enough to address the inherent risks of this fast-evolving sector, without curbing its innovative potential. The urgency of these efforts has been underscored by recent setbacks in the crypto space, including the collapse of the FTX digital currency exchange platform. Such incidents have heightened concerns and accelerated regulatory initiatives.
In the United States, the government has released “The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks,” a comprehensive guide addressing issues surrounding protection and enforcement. Meanwhile, the European Union has made strides in creating a unified regulatory framework through its recently adopted Markets in Crypto Assets (MiCA) rules. Not to be left behind, Canada has also stepped into the regulatory arena by issuing its first set of federal guidelines.
As nations continue to take individualistic or collective strides, the onus remains on stakeholders to remain updated and adaptable, ensuring compliance while optimising opportunities.
Cross-border transactions of crypto assets also present unique tax implications. With no uniform classification of digital assets as currencies, existing double taxation treaties play a pivotal role in determining tax liability.
Navigating the maze of global tax and accounting rules for cryptocurrencies is not straightforward, but Double Tax Treaties (DTAs) offer some guidance. These treaties, modelled on a global standard, contain Articles 7 and 12, which help determine whether income from selling a crypto asset counts as a “business profit” or a “royalty.”
Article 7 applies when you Are making money from ongoing operations in another country, but only if you have a stable, permanent business there. Article 12 comes into play when you get paid for allowing, among others, the use of an intangible asset like a cryptocurrency.
Countries often hold back some tax right at the source when a royalty payment is involved. So, figuring out whether your crypto sale is a business profit or a royalty is crucial. Business profits are usually taxed in your home country unless you have a permanent operation in a foreign country. Royalties, on the other hand, can be taxed right where the payment originates.
Cryptos are intangible, just like a piece of copyrighted software. However, there is debate around whether just using the software counts as “use of copyright,” which is what traditionally triggers a royalty tax. Typically, you would need to have in-depth control or rights over the software for it to be considered a royalty.
Think of it like this: If you buy off-the-shelf software, you are paying for the use of the software itself, not the underlying algorithms or any other intellectual property. Therefore, this payment is not considered a royalty. Likewise, if you are simply buying or selling cryptocurrencies, and not tapping into its underlying algorithm for further financial gains, it may not count as a royalty either.
What is the practical impact? If your crypto income is not a royalty, you might escape withholding tax in the other jurisdiction, as per Article 7. This is especially significant given crypto assets’ growing market capitalisation, which currently hovers around $1.2 trillion.
As cryptocurrencies continue to disrupt traditional financial systems and gain economic relevance, the regulatory landscape is ever-changing. Whether it is accounting standards or tax treatments, differences exist across countries—from complete bans to open-armed acceptance. It is crucial, then, to consult experts to understand how each jurisdiction treats crypto assets, as global policies are far from settled.
Boasting a global market cap nearing $1.2 trillion as of July 2023 (Rashi Maheshwari, Why Is the Crypto Market Rising Today?, Forbes Advisor), the crypto asset sector has entrenched itself as a mainstay in the financial landscape. This is even though it is still short of its 2021 zenith of nearly $3 trillion (Davis Chu and Victoria Schumacher, A Deep Dive Into Crypto Valuation, S&P Global). The crypto world is undeniably impactful but is still in a phase where policies and frameworks are very much a work in progress.
As the regulatory landscape for crypto assets is still developing, with very different positions being taken across jurisdictions. Accordingly, seeking expert advice from accounting and/or tax advisors is vital.
If you have questions about crypto assets, accounting and taxation challenges and would like to speak to an expert, please get in touch.
August 30, 2023
Kreston BSG is hosting a webinar on U.S. Market expansion for Latino entrepreneurs with guest speaker Veronica Quintana, Leader of the Latin-Owned Business Practice at CBIZ MHM. The webinar is on 7 September 2023 at 16:30 (Mexico Central Time) and will be held in Spanish.
Latinos own nearly 5 million businesses in the U.S. and account for over $800 billion in revenue. If you’ve ever thought about taking your business across borders and stepping into the lucrative U.S. market, now is the perfect opportunity. Kreston BSG is thrilled to partner with CBIZ in the United States for a webinar aimed at guiding entrepreneurs through the tax and legal implications of starting or expanding a business in North America.
Leader of the Latino-Owned Business Practice at CBIZ & MHM, Veronica Quintana brings a wealth of knowledge and experience in navigating the U.S. market.
Legal-tax partner from Kreston BSG Mexico, Francisco Bracamonte, will serve as the moderator, steering the discussions towards actionable insights.
July 5, 2023
Kreston ATC Chile has launched a comprehensive new guide to starting a business in Chile. As a leading auditing and advisory firm in Chile, their goal is to equip our clients with the guidance and support they need to turn their entrepreneurial visions into reality. Ricardo Gameroff, partner at Kreston ATC Chile, comments;
“Chile’s robust and stable economic landscape has captured the attention of international investors, and our guide serves as a gateway into the vibrant business ecosystem of our nation, showcasing a wealth of opportunities for those seeking foreign investment.”
Below is a brief summary of the 62-page guide, which offers legal and regulatory frameworks, financial activities, industry-specific scenarios, culturally attuned insights, pragmatic recommendations, and more.
Setting up a business in Chile can be a relatively straightforward process, with the timeline for registration varying depending on the company type and registration complexity. Typically, incorporating a company in Chile takes about one – two weeks when all required documentation is accurately and timely submitted.
Chilean law generally does not impose a minimum capital requirement for company formation, except for certain special types of “Sociedades Anónimas” (stock corporations). In most cases, a capital of 1 peso is sufficient. However, it is important to note that this amount may not cover all the costs associated with starting and operating a business in Chile.
When it comes to raising finance in Chile, several methods are commonly used, including bank loans, venture capital, crowdfunding, government programs, and angel investors. Each option has its own advantages and considerations, and the choice should be based on your specific business needs and circumstances.
To set up a business in Chile, you must comply with certain legal requirements. These requirements may vary depending on your business type and industry. Key obligations include establishing a legal entity, registering your business with government agencies, obtaining necessary licenses and permits, ensuring compliance with employment laws, adhering to accounting and tax regulations, and acquiring any additional certifications required.
When establishing a business in Chile, selecting the appropriate business structure is crucial. Common options include corporations (Sociedad Anónima, SA), limited liability companies (Sociedad de Responsabilidad Limitada, SRL), “Sociedad por Acciones” (SpA), and branch offices (Agencia). Consider your business goals, legal requirements, and operational considerations to make an informed decision.
Compliance with payroll and taxation regulations is essential when operating a business in Chile. It is important to register with the Chilean tax authorities and meet all legal obligations. Seeking guidance from local professionals, such as lawyers or accountants, can help navigate the intricacies of payroll and taxation requirements effectively.
Contact Kreston ATC Chile for additional insights or to arrange a consultation or get in touch.
Stuart is an FCA-qualified chartered accountant with more than 10 years of practical accounting and audit experience.
He leads the technical developments for Duncan & Toplis. This covers audit, financial reporting and maintaining quality of work.
He has recently been appointed to Duncan & Toplis’ operations board and become a member of the ICAEW’s influential Ethics Advisory Committee. Stuart also sits on the Kreston Global ESG Committee.
June 28, 2023
On 26 June 2023, The International Sustainability Standards Board (ISSB) issued its first two reporting standards, IFRS S1 and IFRS S2.
The issuing of these inaugural standards signifies the “ushering in a new era of sustainability-related disclosures in capital markets worldwide”.
One of the most significant limiting factors to the effectiveness of climate reporting has been the number of different bases on which entities report on. There has been a desperate need for global consistency. It is hoped that the release of these standards will be a turning point for the disclosure of climate-related risks and opportunities specific to individual entities.
These first two standards build on the ISSB’s objectives to;
S1 covers the general requirements for disclosure of sustainability-related financial information.
S1 sets the scene for the specific requirements of S2 and for future sustainability standards covering areas other than climate.
S1 adopts the structure of the Task Force on Climate-Related Financial Disclosures (TCFD). S1 also refers to other standards and frameworks in the absence of a specific ISSB standard.
The standard’s main objective is to “require an entity to disclose information about its sustainability-related risks and opportunities that is useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.”
There is a requirement that an entity discloses information about all such risks and opportunities that could reasonably be expected to affect the entity’s prospects.
S1 prescribes how an entity prepares and reports such disclosures, setting out general requirements for the content and presentation of those disclosures so that the information is useful to the users of that information.
In particular, the standard requires that an entity provides disclosures about:
S2 covers the specific requirements of climate-related disclosures.
The main objective of the standard is to “require an entity to disclose information about its climate-related risks and opportunities that is useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.”
S2 also incorporates the TCFD recommendations and guidance and includes a requirement to provide industry-specific disclosures. Industry-specific metrics are included as illustrative guidance, taken from SASB standards.
S2 specifically applies to:
In particular, the standard requires that an entity provides disclosures about:
Both standards are effective for periods beginning on or after 1 January 2024, early adoption is permitted as long as both standards are applied.
Adoption of the standards is voluntary. However, local jurisdictions may make their adoption mandatory for certain classes of entities.
At this stage there are no specific assurance requirements in place. However, analysis provided by IFAC would indicate that of the entities reviewed that did report some ESG information, over 50% have obtained some level of assurance on that information between 2019 – 2021.
Assurance has been gained from the entity’s auditor (who provides the majority) and other service providers.
Although there are no specific international ESG assurance standards currently set, the majority of assurance work was performed under ISAE 3000 (revised). The vast majority of reviews obtained limited assurance with c10% obtaining reasonable assurance.
The ISSB will be promoting the standards worldwide, working with local jurisdictions and focusing on the standard’s connectivity with financial statements. There is also currently a public consultation on four projects to further understand the standard-setting priorities covering ecosystems, human capital, human rights and integration in reporting. Further standards covering other elements of ESG are likely to follow.
In addition to the ISSB standards, EFRAG has been developing the European Sustainability Reporting Standards (ESRS – 12).
These standards have a mandatory implementation for applicable entities with a progressive phase-in period over several years, with early adoption being encouraged.
The standards have a comprehensive coverage of ESG matters, not just focusing on climate to start with.
The standards have the concept of double materiality and the ESG reports must be made in the management report, at the same time as the financial statements.
The standards also have a mandatory assurance element, starting as limited but moving to reasonable over time.
EFRAG is working with the ISSB to promote interoperability.
The European standards certainly seem to have built on the international ones so far, and are mandatory with a mandatory assurance element.
The introduction of the two SS standards is a pivotal moment in the reporting of ESG matters.
They provide a basis for international comparability and help bring ESG matters to the forefront of investors’ decision-making.
More will follow but this is a vital moment in the battle towards net zero. Read more about global ESG developments on our sustainability hub.
June 14, 2023
Kreston BSG, which has 10 offices across Mexico, recently held an event to raise the profile of the work accountants do in Mexico and the development of new technology to support businesses to grow and thrive. This event was held to mark Accountants Day in Mexico.
Kreston BSG created an infographic to share the details of the size and capacity of this ambitious firm, with 228 accountants across 10 offices, including Mexico City, Cabo San Lucas and the largest office, which is in Puebla. They recorded eight different services, including tax, audit and transfer pricing. You can read the full document with Kreston BSG capacity facts and figures here, in both English and Spanish.
Kreston BSG shared tips and answered pressing questions for businesses looking to do business in Mexico successfully. They also shared a day in the life videos, to give an inside view on what it is like supporting clients as an accountant in Mexico.
The team also held a webinar with accountants from across all the offices of Kreston BSG to discuss the future of AI in Mexico, evaluating how the team visualise accounting in the future with the rise of artificial intelligence Watch the video here in Spanish.
If you would like to learn more about Kreston BSG, please get in touch.
Javier is an audit manager at Kreston FLS in Mexico City. He graduated from Universidad Iberoamericana and holds a Master’s degree in Business Administration from Shanghai and has studied at Loyola University in Chicago. He has experience in auditing and consulting, both in Mexico and the United States, where he worked for over six years.
June 13, 2023
The use of AI in Mexico is experiencing rapid growth in adoption, which has been further accelerated by the COVID-19 pandemic. Among these technologies, Artificial Intelligence (AI) has emerged as a disruptive force, transforming the way businesses operate and deliver services. Read the full article written by Kreston FLS audit expert, Javier García Sabaté Payró, and featured in Veritas here (Spanish) or the summary below.
According to a study conducted by IBM, the current adoption of AI in Mexican companies stands at 35%, with an additional 44% already incorporating AI into their existing applications and processes. This indicates a growing recognition of the potential benefits that AI can bring to entrepreneurs and business advisors. By embracing AI, businesses can take advantage of an already thriving industry to save costs on the bottom line. Examples below;
AI offers a wide range of valuable applications, one such application is data analysis. With AI, large volumes of financial, accounting, and contractual data can be analysed within seconds. This enables the identification of patterns and trends that would be difficult to detect manually, leading to more informed decision-making and targeted recommendations for clients. Here is a brief summary of just some of the areas AI could support businesses in Mexico;
The most basic function of AI facilitates the automation of manual and repetitive tasks such as data entry and account reconciliation. This not only saves valuable time and minimises errors but also allows accountants, advisors, and entrepreneurs to redirect their focus towards strategic and high-value tasks specific to each business. By automating mundane processes, AI streamlines operations, enhances efficiency, and maximises productivity.
By leveraging AI, large volumes of data, including financial, accounting, and contractual information, can be analysed within seconds. This capability enables the identification of intricate patterns and trends that would be arduous to detect manually, potentially taking years to analyse. The ability to swiftly analyse data empowers businesses to make more informed choices and provide precise, targeted decisions, based on real-time data.
With advanced algorithms, AI can identify potential risks and evaluate their likelihood of occurrence. Moreover, by analysing vast amounts of data from diverse sources such as financial reports, market trends, legal references, and customer behaviour, analysts and entrepreneurs can concentrate their efforts on specific areas of interest. This focused approach enhances risk management practices, allowing for a comprehensive understanding of possible risks and paving the way for better outcomes.
Through AI-driven data analysis, process automation, risk analysis, electronic invoice analysis, and identification of risks, businesses can harness the transformative power of AI. By embracing these applications, organisations gain valuable insights, optimise operations, and make informed decisions that drive success in an increasingly data-driven and competitive business landscape.
AI is proving to be a valuable tool for compliance and efficiency in Mexico. For instance, AI-powered tools that facilitate the download and analysis of electronic invoices have revolutionised the process. These tools can swiftly analyse complete years’ worth of invoice information within minutes. This capability assists advisors and entrepreneurs in accurately responding to authorities’ requirements, avoiding the need for deadline extensions and mitigating potential costs for both companies and authorities.
The future of AI in Mexico looks promising, with a wealth of job opportunities emerging in the fields of data science, machine learning, and software development. According to the World Economic Forum, AI is expected to generate 900,000 new jobs in Mexico by 2025. Technological hubs such as Mexico City, Guadalajara, Monterrey, and Tijuana are witnessing a surge in startups and technology firms, further propelling the AI revolution in the country.
In conclusion, AI is revolutionising business operations and services in Mexico. Entrepreneurs and business advisors have a unique opportunity to leverage AI’s capabilities to streamline processes, make more informed decisions, and drive growth. By embracing AI early on, businesses in Mexico can gain a significant competitive advantage and pave the way for future success. With the rapid advancement of AI, it is crucial for authorities, entrepreneurs, and business advisors in Mexico to stay informed and delve deeper into this transformative technology. By doing so, they can position themselves at the forefront of the AI revolution and seize the numerous opportunities it presents for business growth and innovation in Mexico.
If you want to discuss using AI to improve business processes for your business in Mexico, please get in touch.
June 1, 2023
May 15, 2023
General Manager and shareholder of consulting companies with a Marketing/ business development and a Financial background with direct experience with several sectors (Real estate, Transport, Fintech, Legaltech, M&A, Import- Export, HR, Restructuring). Exco Polska Board Member.
Christina is an experienced consultant specialising in ESG, sustainability, and climate change. She has over 13 years of expertise and has worked with various organizations, including local municipalities, national government agencies, the Directorates-General of the European Commission, and the private sector across different industries.
May 9, 2023
Our experts and ESG Committee members Laurent Le Pajolec and Christina Tsiarta recently collaborated on an article where they shared insights on why a firm should engage in Trade Cooperation Agreement (TCA) and why existing accounting methodologies are no longer sufficient for modern-day businesses.
The Netherlands has overtaken Canada to become home to the world’s most diverse, equitable, and inclusive workplaces, as per Kantar’s Inclusion Index 2022. The index measures progress in developing inclusive and diverse workplaces globally, with personal services, non-profit, and professional services being voted as the most inclusive industries, while the entertainment industry remains among the least inclusive. Despite a growing appetite for systemic change in diversity, equity, and inclusion, progress in developing diverse and inclusive workplaces has stalled globally, with countries such as Canada, the USA, and Italy seeing a significant drop in their scores. Failure to take meaningful action impacts recruitment and retention, with one in four employees likely to leave their organisation due to a lack of inclusion.
The research indicates that although DEI has become more prominent in businesses’ agendas, there has been a lack of progress. The global score for the index remains at 55, the same as in 2020. In contrast, eight out of twelve markets surveyed have experienced a decline in their Inclusion Index score from 2019 to 2022. However, Mexico and Australia have made significant strides in DEI progress, with 15% and 7% increases in the last three years.
Industries are making varied progress in their efforts towards inclusion. Personal services (such as beauty salons), professional services (like legal and accounting firms), and non-profit organizations are leading the way. Financial services, ranking in the middle, and IT and marketing companies, in the lower half of the ranking, are taking steps to improve inclusion. However, industries like fashion, hospitality, security, entertainment, media, sports, publishing, and agriculture, ranked at the bottom, still have a lot of work to do to improve their inclusivity.
Read more from Laurent Le Pajolec and Christina Tsiarta here.
April 19, 2023
April 18, 2023
Karla Pastor is a seasoned financial operation professional with a wealth of experience managing head office operations. She is responsible for ensuring the smooth and efficient execution of all-around financial operations, managing the network’s CRM system, and overseeing HR and IT functions. Karla directly supports the Executive Director, coordinating members’ meetings and annual event logistics worldwide. Karla is also the Head of Sustainability at member firm Kreston FLS, showcasing her commitment to promoting sustainable business practices.
April 12, 2023
Today, each country in Latin America has a wide variation in the implementation of practices that have a positive impact on environmental, social, and corporate governance (ESG) issues. Although there is a social demand for these issues and several companies have voluntarily adopted ESG practices, there is currently no standardized or dominant framework in Latin America to accelerate their adoption. Here we have given a synopsis of ESG regulation in the largest economies in Latin America with the intention of providing a context for the region.
In Latin America, a path is opening up that has been adopting different forms or measures to make visible the efforts, or lack them, of companies and governments to make progress on ESG issues. As a result, ESG reporting is at a very early stage in Latin America. However, in recent years, there has been growing interest in the implementation of ESG as a guiding tool on social and environmental issues.
According to the International Bar Association Latin American Regional Forum[1], by 2022, most ESG-related practices are in the environmental, compliance, banking and corporate areas. About 80% of the firms that have incorporated ESG in internal practices. The most popular is around recycling followed by community activities and programs to avoid discrimination. Only 3 countries have reported that they are developing an ESG taxonomy. Unfortunately, this results in a problem of greenwashing[2], the main obstacle to implementation.
One of the frameworks that can best address social and environmental aspects are the UN Sustainable Development Goals (SDGs) and according to the UN, all countries in Latin America and the Caribbean are committed to the SDGs, however, of these, only 19 countries[3] are required to report their actions and results. It should be noted that some countries may have different levels of commitment to progress on the SDGs. In Latin America, most of the firms that adopt some ESG commitment relate it to these goals.
The following table shows examples of ESG and climate change regulations to provide a context for the variation in regulations.
| Country | ESG Related Regulations | Description | Climate Change Related Regulations |
| Argentina | N/A | There is currently no specific national regulation for ESG reporting by companies. However, some companies in Argentina are voluntarily adopting mainly environmental practices.[4] | Renewable Energy and Energy Efficiency Law (Law 27.191)[5] |
| Brazil[6] | BC Resolution No. 139/2021 and BC Instruction Standard No. 153/2021 | In September 2021, a package of solutions and requirements on ESG disclosure was launched. There are other financial instrument regulations such as the criteria for granting rural loans. | National Policy on Climate Change (PNMC) |
| Chile | Ministry of Finance launched a Taxonomy to promote green investments[7] | Taxonomy is presented as a tool to define a common language between what is understood as environmentally sustainable. In addition, ISO 26000 is voluntary, but has been implemented by 50% of the multinationals. It consists of providing companies with guidelines and orientation for adopting socially responsible behavior with their environment, considering the social and environmental impacts they may produce.[8] | Law on General Bases of the Environment (Law 19300)[9] |
| Colombia | Green Taxonomy and External Circulars 008 and 020 adopted by SFC in 2022 | Promotes and facilitates the channeling of resources towards sustainable investments and defines the primary guidelines for the development of green finance. instructions on the content of the prospectus for environmental, social, and/or industry and knowledge economy bonds.[10] Companies have also adopted standards such as ISO26,000 on a voluntary basis.[11] | There is significant weight in laws on environmental protection issues. Law 1931 of 2018[12] |
| Mexico | Sustainable Finance Committee. such as: 1) Sustainable Taxonomy (Ministry of Finance and Public Credit); 2) Leveraging Capital Mobilization Opportunities (Comisión Nacional del Sistema de Ahorro para el Retiro or Consar and Banxico); 3) ESG Risk Measurement (Banxico), and 4) Disclosure of Information and Adoption of ESG Standards (CNBV; Comisión Nacional Bancaria y de Valores). | CNBV (regulator of banking and public companies) will present aggregated results of these diagnostics and will conduct a pilot application of the taxonomy with the participation of voluntary financial institutions, with three main objectives: climate change, financial inclusion and gender inclusion.[13] | Compendium of 13 laws and regulations derived from the different standards (NOM, NMX) applicable to each environmental area; water, soil, air, rural development, waste, among others.[14] |
| Peru | N/A | There is currently no specific regulation for CSR reporting by companies. However, some companies in Peru are voluntarily adopting sustainability reporting practices. | The purpose of the Framework Law on Climate Change is to establish the principles to reduce the country’s vulnerability to climate change, take advantage of the opportunities of low-carbon growth and comply with the international commitments assumed by the State.[15] |
Note: It is important to note that this table is not exhaustive and that the situation in each country may be subject to changes and updates.
In conclusion, although there are governance bodies in some countries working with ESG and green taxonomies, and while there is still no mandatory ESG reporting, all countries have climate change regulations. There is progress, but there is no regulation on reporting.
To speak to an expert about your ESG reporting obligations in Latin America, please contact us.
Versión en Español
Hoy en día, cada país de América Latina tiene mucha variación en los niveles de implementación de prácticas que tengan un impacto positivo en temas ambientales, sociales y de gobierno corporativo o ESG (por sus siglas en inglés). A pesar de que existen una demanda social en estos temas y varias empresas han adoptado prácticas voluntarias de ESG, actualmente no existe un marco estandarizado o dominante en América Latina para acelerar su adopción. Éste articulo consta de una síntesis acerca de las regulaciones en ESG en los países de mayor economía en América Latina con la intención de dar un contexto de la región.
En América Latina está abriendo un camino que ha ido adoptando diferentes formas o medidas para hacer visible los esfuerzos, o falta de ellos, de las empresas y de los gobiernos para avanzar en temas de ESG. Como consecuencia, los reportes de ESG se encuentran en una etapa muy temprana en América Latina. Sin embargo, en los últimos años, se ha despertado un creciente interés en la implementación de ESG como instrumento de guía en temas sociales y medioambientales.
De acuerdo con International Bar Association Latin American Regional Forum[16], en 2022, la mayor parte de las prácticas relacionadas con ESG son en la parte medioambiental, compliance, bancaria y corporativa. Cerca del 80% de las firmas que han incorporado ESG es en el manejo de sus propias actividades. La más popular tiene que ver con reciclaje seguido de actividades comunitarias y programas para evitar la discriminación. Únicamente 3 países han reportado que están desarrollando una taxonomía en ESG. Lamentablemente esto da como resultado un problema de “greenwashing[17]” dando como resultado el principal obstáculo en su implementación.
Uno de los marcos que mejor pueden abordan aspectos de sociales y medioambientales son los Objetivos de Desarrollo Sostenible (ODS) de la ONU y de acuerdo con ella, todos los países de América Latina y el Caribe están comprometidos con los ODS, sin embargo, de éstos, únicamente 19 países[18] tienen obligación de reportar sus acciones y resultados. Cabe destacar que algunos países pueden tener diferentes niveles de compromiso en cuanto al progreso de los OSD. En América Latina, gran parte de las firmas que adoptan algún compromiso de ESG lo relaciona con estos objetivos.
En la siguiente tabla se pueden observar el ejemplo de regulaciones referentes a las ESG y cambio climático para dar un contexto de la variación en regulaciones.
| País | Regulaciones relacionadas ESG | Descripción | Regulaciones relacionadas con el cambio climático |
| Argentina | N/A | Actualmente no existe una regulación nacional específica para la presentación de informes de ESG por parte de las empresas. Sin embargo, algunas compañías en Argentina están adoptando voluntariamente prácticas principalmente medioambientales.[19] | Ley de Energías Renovables y Eficiencia Energética (Ley 27.191)[20] |
| Brasil[21] | Resolución BC No. 139/2021 y Norma Instrucción BC No. 153/2021 | En septiembre 2021se lanzó un paquete de soluciones y requerimientos en declaración en ESG. Existen otras regulaciones de instrumento financieros como el criterio para otorgar créditos rurales. | Política Nacional sobre Cambio Climático (PNMC) |
| Chile | Ministerio de Hacienda lanzó la Taxonomía para fomentar inversiones verdes[22] | Taxonomía se presenta como una herramienta para definir un idioma común entre lo que se entiende por medioambientalmente sostenible. Adicionalmente, ISO 26000 Es voluntaria, pero ha sido implementada por el 50% de las multinacionales. Consiste en brindar a las empresas directrices y orientación para adoptar un comportamiento socialmente responsable con su entorno, considerando los impactos sociales y medioambientales que puedan producir.[23] | Ley sobre Bases Generales del Medio Ambiente (Ley 19300)[24] |
| Colombia | Taxonomía Verde y circulares externas 008 y 020 adoptada por la SFC en 2022 | Promueve y facilita la canalización de recursos hacia inversiones sostenibles y define los lineamientos primarios para el desarrollo de las finanzas verdes. instrucciones sobre el contenido del prospecto de bonos ambientales, sociales, y/o de economía de la industria y del conocimiento.[25] Las empresas también han adoptado normas como ISO26.000 voluntariamente.[26] | Hay un peso significativo en leyes en temas de protección ambiental. Ley 1931 de 2018[27] |
| México | Comité de Finanzas Sostenibles. como: 1) Taxonomía Sostenible (Secretaría de Hacienda y Crédito Público); 2) Aprovechamiento de Oportunidades de Movilización de Capital (Comisión Nacional del Sistema de Ahorro para el Retiro o Consar y Banxico); 3) Medición de Riesgos ESG (Banxico), y 4) Divulgación de Información y Adopción de Estándares ESG (CNBV; Comisión Nacional Bancaria y de Valores). | CNBV (órgano regulador de banca y empresas públicas) presentará resultados agregados de esos diagnósticos y llevará a cabo una aplicación piloto de la taxonomía con la participación de instituciones financieras voluntarias, con tres objetivos principales: cambio climático, inclusión financiera e inclusión de género.[28] | Compendio de 13 leyes y reglamentos que se derivan en las diferentes normas (NOM, NMX) aplicables a cada rubro ambiental; agua, suelo, aire, desarrollo rural, residuos, entre otros.[29] |
| Perú | N/A | Actualmente no existe una regulación específica para la presentación de informes de OSD por parte de las empresas. Sin embargo, algunas empresas en Perú están adoptando voluntariamente prácticas de informes de sustentabilidad. | Ley Marco sobre Cambio Climático tiene por objeto establecer los principios a fin de reducir la vulnerabilidad del país al cambio climático, aprovechar las oportunidades del crecimiento bajo en carbono y cumplir con los compromisos internacionales asumidos por el Estado.[30] |
Nota: Es importante tener en cuenta que esta tabla no es exhaustiva y que la situación en cada país puede estar sujeta a cambios y actualizaciones.
En conclusión, a pesar de que existen órganos de gobierno en algunos países trabajando con ESG y taxonomías verdes, aún no hay ninguna obligatoriedad en temas de ESG, pero todos los países tienen regulaciones de cambio climático. Hay un avance, pero no hay regulación en el reporteo.
Para hablar con un experto sobre sus obligaciones de presentación de informes ESG en América Latina, póngase en contacto con nosotros.
[1] ESG survey results report: ESG in Latin America
[2] The act of misleading consumers about a company’s environmental practices or the environmental benefits of a product or service.
[3] Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela, Venezuela
[4] https://abogados.com.ar/litigios-y-regulaciones-esg-una-nueva-tendencia-global/32028#_ftn21
[5] https://www.energia.gob.ar/contenidos/verpagina.php?idpagina=3876
[6] https://iclg.com/practice-areas/environmental-social-and-governance-law/brazil
[7] https://www.hacienda.cl/noticias-y-eventos/noticias/comite-taxonomia-finanzas-verdes
[8] https://www.bufetes.cl/articulos/estan-obligadas-las-empresas-a-ser-socialmente-responsables
[9] https://observatoriop10.cepal.org/es/instrumentos/ley-bases-generales-medio-ambiente-ley-19300#:~:text=La%20ley%20establece%20un%20marco,la%20conservaci%C3%B3n%20del%20patrimonio%20ambiental.
[10] https://www.fitchratings.com/research/es/fund-asset-managers/desarrollos-regulatorios-en-latinoamerica-impulsan-iniciativas-de-inversion-esg-20-09-2022
[11] https://www.larepublica.co/responsabilidad-social/normas-que-regulan-los-planes-de-sostenibilidad-o-de-responsabilidad-social-en-colombia-2709324
[12] https://medioambiente.uexternado.edu.co/abc-de-la-ley-de-cambio-climatico/
[13] https://www.larepublica.co/responsabilidad-social/normas-que-regulan-los-planes-de-sostenibilidad-o-de-responsabilidad-social-en-colombia-2709324
[14] https://www.globalstd.com/blog/legislacion-ambiental-en-mexico/#:~:text=Las%20leyes%20que%20conforman%20la,Prevenci%C3%B3n%20y%20Gesti%C3%B3n%20Integral%20de
[15] https://busquedas.elperuano.pe/normaslegales/ley-marco-sobre-cambio-climatico-ley-n-30754-1638161-1/
[16] ESG survey results report: ESG in Latin America
[17] Es el acto de confundir a los consumidores en relación con las prácticas medioambientales de una compañía o los beneficios que aporta para el medio ambiente un producto o servicio.
[18] Argentina, Bolivia, Brasil, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, México, Nicaragua, Panamá, Paraguay, Perú, República Dominicana, Uruguay, Venezuela
[19] https://abogados.com.ar/litigios-y-regulaciones-esg-una-nueva-tendencia-global/32028#_ftn21
[20] https://www.energia.gob.ar/contenidos/verpagina.php?idpagina=3876
[21] https://iclg.com/practice-areas/environmental-social-and-governance-law/brazil
[22] https://www.hacienda.cl/noticias-y-eventos/noticias/comite-taxonomia-finanzas-verdes
[23] https://www.bufetes.cl/articulos/estan-obligadas-las-empresas-a-ser-socialmente-responsables
[24] https://observatoriop10.cepal.org/es/instrumentos/ley-bases-generales-medio-ambiente-ley-19300#:~:text=La%20ley%20establece%20un%20marco,la%20conservaci%C3%B3n%20del%20patrimonio%20ambiental.
[25] https://www.fitchratings.com/research/es/fund-asset-managers/desarrollos-regulatorios-en-latinoamerica-impulsan-iniciativas-de-inversion-esg-20-09-2022
[26] https://www.larepublica.co/responsabilidad-social/normas-que-regulan-los-planes-de-sostenibilidad-o-de-responsabilidad-social-en-colombia-2709324
[27] https://medioambiente.uexternado.edu.co/abc-de-la-ley-de-cambio-climatico/
[28] https://www.larepublica.co/responsabilidad-social/normas-que-regulan-los-planes-de-sostenibilidad-o-de-responsabilidad-social-en-colombia-2709324
[29] https://www.globalstd.com/blog/legislacion-ambiental-en-mexico/#:~:text=Las%20leyes%20que%20conforman%20la,Prevenci%C3%B3n%20y%20Gesti%C3%B3n%20Integral%20de
[30] https://busquedas.elperuano.pe/normaslegales/ley-marco-sobre-cambio-climatico-ley-n-30754-1638161-1/
March 23, 2023
Kreston Global has maintained its 13th position in the International Accounting Bulletin world survey. Kreston Global continues to enjoy steady growth, with a 4% turnover increase in 2022.
The network has attracted a record number of new firms in recent years and US firm CBIZ MHM has contributed significantly to the growth with key strategic acquisitions, including New York–based Marks Paneth, helping to propel CBIZ MHM from 13th to 8th position in North America regional rankings.
Liza Robbins, Kreston Global Chief Executive commented,
“We are delighted to have retained our global position, although our focus continues to be on delivering real benefits to firms to help them grow and thrive, and less about global rankings.
The fast pace of development of Kreston Global led to a new strategic plan being unveiled in 2021, which embraces the network’s wider purpose-led approach. The new firms that have joined us over the last 12 months have only enhanced the strong ties that connect our firms to each other.
2023 looks set to be another strong year of member growth, with excellent firms interested in joining the network.”
If you are an ambitious, internationally-focused firm that is interested in joining Kreston Global as a member, you can fill out a form to apply to start your application.
March 10, 2023
Kreston ATC Chile is the latest firm to become part of Kreston Global.
The firm provides services to local and international companies across Chile and overseas, ranging from external and internal audits, taxes, risk advisory, forensics, payroll and bookkeeping. Headquartered in the capital, Santiago, the firm is led by experienced partners with backgrounds in EY and RSM, used to reporting to offices in North America, Europe and Asia.
Pictured from left to right are Ricardo Gameroff, Partner-Advisory Leader and International Liaison, Hans Caro, managing partner, and Eduardo Medina, audit lead partner.
Hans Caro Larsen, Managing Partner, commented, “We are very excited to join Kreston and are committed to contributing to the global organisation with our knowledge and experience. We already have one of our partners involved in the network’s Global Audit Group as well as serving as a member of the Global Quality Group and look forward to extensive international collaboration”
To learn more about doing business in Chile, click here.
