Green Light for Integration of Lima Stock Exchange with Those of Chile and Colombia
By Dialogo January 03, 2011
The Peruvian Congress approved twelve modifications to the country’s income-tax laws in a public session, clearing the way for the integration of the Lima Stock Exchange with those of Chile and Colombia.
The changes apply to income from foreign sources and to the rates for non-resident individuals and legal persons and were approved by the Congressional Permanent Commission, which acts when the legislature is in recess.
“This integration of the exchanges is going to enable greater dynamism in the stock market,” the president of the Congressional Economic Commission, Rafael Yamashiro, told a television station.
The modifications will make it possible to grant similar tax treatment to the three exchanges and eliminate the obstacles that forced the suspension of the process for the brand-new Latin American Integrated Market (MILA) on 20 December.
On 9 November, the presidents of the Colombian Stock Exchange (BVC), the Santiago Commercial Exchange (BCS), and the Lima Stock Exchange (BVL) signed an integration agreement with the objective of becoming the leading Latin American market in the number of firms listed.
On that occasion, it was reported that the three exchanges together have a capitalization – the value of the companies registered on the three exchanges – of more than 600 billion dollars, which would make MILA the second-largest regional market after the São Paulo Exchange (Brazil), which has a capitalization of around 1.3 trillion dollars.