Latin American Desk

Whether you are a multinational entering Latina America or a Latin American company doing business in Scandinavia, navigating through new systems within finance, legal, tax and accountancy on the other side of the border can be a burden.

Cultural differences and statutory requirements play a big role when engaging in cross-border operations. We know the challenges cross-border operations can pose, and we also know that every industry and every business is different. This is why we offer our significant experience and comprehensive advice for operating your company most efficiently based on the market your company operates in.

We are uniquely positioned to provide you with insight into tax and business developments within Latin America and Scandinavia, including planning ideas that are tailored to the jurisdictions in which your company operates and to specific circumstances and needs.
 

Are you exploring business opportunities within the Latin American market?

Moving to Latin America

Latin America is a fast growing participant in the global economy offering vast opportunities for companies to either establish or to expand their presence in the Latin American region. The countries within Latin America continue to show economic growth in spite of the global crisis and they are a developing region in all respects. There is significant investment and a demand for technology and knowledge and overall the future is looking positive for Latin America.

Specifically, Mexico is becoming a centre of Nordic business in Latin America. In recent years, many companies have chosen to invest in Mexico and set up their regional offices, not only for its proximity to the United Stated and the ease of trade, but also because the domestic market is growing rapidly. Today, Mexico is considered to be one of the most competitive countries in the world, belonging to the so-called MINT group along with rapidly growing economies of Indonesia, Nigeria and Turkey.

There are currently over 250 Nordic companies in Mexico and the country offers a lot of opportunities for the Nordic companies especially in the automotive, energy, health, manufacturing, mining, retail, telecoms and transportation & logistics sectors.

But like all foreign markets, both Mexico and the Latin-American market in general can be difficult to enter for a Scandinavian company. However, given our experience we can offer you an insight into the market in Latin-American.  We can help you get closer to the Latin American market across the border and offer advice on different legal and business aspects.  

What we offer

If your company is active in any of the Latin American countries or in the process of becoming active, our professionals offer assistance with the following:

• Business establishment: assistance with all legal and tax issues
• International assignments and secondments
• Advice on various taxation issues and structures (corporate and personal tax)
• Accounting outsourcing and payroll processing
• Tax, financial and payroll reporting preparation and submission on behalf of the clients
• Transfer pricing compliance

Are you exploring business opportunities within the Scandinavian market?

Moving to Scandinavia

Danish stable economy, transparent business environment, favorable locations linking continental Europe with the Nordic and Baltic countries, efficient transport infrastructure and innovative technologies have proven to be effective factors attracting foreign investors.

In Denmark, companies benefit from an easy registration, as well as a well-organized public sector with virtually no bureaucracy. Combined with favorable tax rules, establishing and developing business in Denmark is time, cost and tax efficient.

Denmark as a Nordic headquarter

According to Danish tax law a foreign branch of a Danish company is generally not subject to tax in Denmark. Administration costs for handling double tax issues may be avoided by having the Nordic headquarter in Denmark instead of other Nordic countries. As a result, Denmark is often chosen as a company’s centre for Nordic or other European activities. In such cases, a company may establish a Danish company (A/S or ApS) which can then establish a branch in other Nordic or regional countries.

Taxation in Denmark

Denmark has a favorable tax climate with a corporate tax rate of 24.5 percent which will be gradually reduced to 22 percent by 2016 and thereby below the EU average. Key employees and researchers recruited abroad pay a lower individual tax for the first 5 years. Foreigners living and working in Denmark also benefit from the Danish welfare system.

Main advantages of Danish Corporation Taxation rules:

• Corporate tax rate of 24.5 percent which will be reduced gradually to 22 percent by 2016. This is below the current EU average. The effective rate is less, as business expenses and depreciations are tax deductible
• Virtually no social security contributions for employers as opposed to many other countries
• No capital duty, share transfer duty or wealth taxes
• Dividends may generally be received/distributed without tax
• Unlimited loss carry forward

What we offer

We provide tailor-made solutions for foreign companies who consider establishing or developing business and activities in Denmark. If your company is looking to invest in Denmark, our experienced M&A team will guide you throughout the process, from the initiating steps and considerations through to completion of the transaction. We will assist you in performing tax due diligence reviews and advising on tax efficient acquisition models. We are also able to advise you on tax efficient corporate restructuring, investment holding structures and operation models. Whatever your needs, our team will ensure that they are met.

Main advantages when setting up a business in Denmark:

• Quick, easy, informal and cost-efficient establishment procedures
• No resident requirements for management and board members
• No notarial deeds
• Dividends can be distributed on an interim basis
• Tax efficient to establish a business in Denmark compared to other Nordic countries
• Lucrative market access to the entire European Union
• Danish company law is in conformity with current EU legislation
• The most flexible labour market
• Highly qualified and motivated talent pool
• World leader in cleantech, ICT and life science
• World’s best test market

Our team has extensive knowledge regarding Danish and European legislation, and will make sure that all regulatory requirements are fulfilled.

We offer services within the following areas:

• Tax reporting and advice international taxation service
• Mergers & acquisitions
• Transfer pricing
• Management consulting
• Compliance services and secretarial assistance

For more detailed information, please see our contact information below.

About PwC’s Latin American Desk

PwC has had a strong presence in Latin America for a long time, with our first office opening in 1906 in Mexico City, Mexico, followed by Buenos Aires, Argentina in 1913 and Rio de Janeiro, Brazil in 1915. With over 12,000 professionals serving more major clients than any other professional services organization in the region, PwC is in a unique position to help companies with operations in Latin America.

Leveraging on this strength, PwC established a Latin America Desk in Denmark as a group dedicated to assisting both Scandinavian clients with different aspects of the business operations in Latin America, as well Latin American clients with their business operations in Scandinavia.

Our fast growing Latin America Desk is an integrated part of PwC’s extensive global network, providing seamless cross-border service for multinationals investing or establishing a presence or expanding within the region.

Through our network, we work closely with experts and other professionals in our global PwC offices within Latin America regions to guarantee optimal use of the knowledge and expertise and well-coordinated services. In particular we have a joint effort with the Nordic Desk of the International Centre at PwC Mexico.