LATAM’s Compliance Crackdown 2025: What Foreign Companies Must Know

By easyco Published August 6, 2025

2025 marks a new era for doing business in Latin America—and it’s being defined by compliance enforcement.

Governments across the region are cracking down on tax avoidance, nominee abuse, and artificial structures, forcing foreign companies to adapt or face steep penalties. From transfer pricing audits in Mexico to substance requirements in Colombia and digital enforcement systems in Peru and Chile, the message is clear:

LATAM isn’t just open for business. It’s serious about compliance.

If you operate across multiple LATAM jurisdictions—or plan to—here’s what you need to know about the 2025 compliance crackdown, and how Easyco can help you stay proactive, protected, and fully compliant.

What’s Driving the 2025 Compliance Surge?

1. Global Pressure and Tax Transparency

Following OECD-led reforms like BEPS 2.0, LATAM countries are aligning with global standards on:

Transfer pricing documentation
Country-by-country reporting
Ultimate Beneficial Owner (UBO) registries
Minimum substance requirements for holding companies

2. Governments Need More Revenue

Post-pandemic deficits and inflation have pushed tax authorities to:

Increase audits
Target offshore and nominee-driven entities
Strengthen anti-avoidance rules and enforce economic substance

Regional Compliance Trends to Watch in 2025

Country	What’s New in 2025
Mexico	Expanded transfer pricing documentation, stricter REPSE oversight
Colombia	New economic substance tests and digital tax filing mandates
Peru	AFIP-like real-time VAT reporting, nominee crackdowns
Chile	Ultimate Beneficial Owner (UBO) registry enforcement, new PE thresholds
Argentina	Enhanced cross-border audit coordination and crypto income reporting

Common Risk Areas for Multinational Structures

Holding companies with no local activity

Many governments now require real operations, including local employees, contracts, or directors to qualify for tax treaty benefits or avoid PE risk.

Undocumented transfer pricing

If your company invoices across LATAM borders, you need to:

Prove that intercompany prices are arm’s length
Maintain master and local files
Document supporting benchmarks

Legal Representation and Economic Substance: What’s Now Required?

Governments are paying closer attention to:

Whether your legal rep or board members are locally based
If you have a real office, registered address, or just a mailbox
Whether directors have real decision-making authority
If your staff are contracted legally and on payroll

This is no longer about ticking a box—it’s about demonstrating substance.

Learn More: Compliance & Legal Representation Services

How Easyco Helps You Stay Compliant Across LATAM

At Easyco, we help companies of all sizes navigate LATAM’s evolving compliance landscape with a proactive, multi-country approach.

We provide:

Real local legal representatives (not proxies or POAs)
Economic substance advisory and virtual office solutions
Transfer pricing documentation and audit readiness
Monthly and annual tax compliance (IVA, IR, withholding, etc.)
Ultimate Beneficial Owner registration and updates
Compliance health checks for existing entities

Whether you’re scaling across LATAM or auditing your existing structure, we’ll help you stay one step ahead—so your business doesn’t get caught off guard.