According to the Proyecto de Ley de Rendición de Cuentas 2016, Uruguay is thinking about modifying its fiscal system to be able to tax OTT companies, starting in January 2018.

The changes will allow the country to tax players which deliver Internet services in Uruguay, regardless of where they are based. According to an analysis of the daily El Observador, only companies legally established in the country are currently charged income tax and VAT.

The new taxing model is likely to be based on credit card activity, as has been done in Colombia since the beginning of the year and has recently been announced in Argentina. In fact, Colombia’s tax reform was seen as a pioneering move at the time, and one that would rapidly spread across the region.

Other big Latin American markets, such as Brazil, as well as smaller ones, like Paraguay, are also considering taxing OTT players.

A change in taxing regulations has been long-demanded by both regional telcos and content providers to even out competitive conditions in the market.