News - New legislation

A Convention entered into by the governments of Ecuador and Peru in relation to reciprocal promotion and protection of investments has been published.

Major changes approved by Congress to the Industrial Property Law became effective throughout Honduras from 28 February 2000.

On 28 February 2000, law 7989 was published in the official gazette, reforming article 156 of the Work Code.

The law was approved on February 24 and published in the Official Newspaper on March 16. It authorises the National Port Company to lease, by public bidding and for a 25-year period, the port facilities of Puerto Cabeza.

In the middle of February Patricia Sawyer G. joined Parra, Rodriguez & Cavelier Abogados as part of its energy and natural resources practice. Ms Sawyer has more than 12 years experience working for various oil and gas companies in Colombia and Venezuela, including as in-house legal adviser for Lasmo Oil.

Brazil's National Monetary Council (CMN) issued Resolution No. 2689, on January 26, 2000, which establishing the rules that will permit foreigners, corporations or individuals to invest directly in Brazil’s financial and capital markets under less rigid structures than formerly in place. As of March 31, 2000, foreign investors will be able to more freely invest in securities and fixed-income funds, and they will be allowed to easily move their funds between both positions.

A partial reform to Nicaragua’s constitution was approved 18 January 2000 and published the following day in the official gazette.

On 16 January, the Brazilian government was preparing to defend legislation aimed at reducing tax evasion after it was challenged in the courts by business associations and political opposition.

Resolution No. SPPLC-038-99 of July 9, 1999 came in to effect on January 7, 2000.

On January 4, 2000 the Government of Paraguay promulgated Law Nº 1533 which establishes the procedures for Government construction which is to be supplemented by rules and regulations that are yet to be published.

A new law on government contracting was published in the official gazette at the beginning of January.

The Brazilian Tax Authorities have published Law No. 9959/00, increasing the withholding tax rates on remittances abroad as of January 1st, 2000. Some tax rates applicable to such remittances increased from 0% to 15% or 25% when made to countries considered as "tax havens".Each remittance shall be analyzed individually in order to verify if there is any applicable special treatment under Brazil's existing Tax Treaty network.

The tax reform law enacted by Congress under #25,239 entered into force on 31 December 1999. This Law exerts additional pressure on contributors with the aim of reducing the fiscal deficit.

As of December 28 1999, Colombia has a new tool to confront the economic crisis which has been threatening the viability of some enterprises.