Please note:
- The information provided here is for informational purposes only and should not be considered tax advice. Always consult with your local tax advisor to ensure you are complying with the most current regulations.
- HubSpot is a foreign entity providing services. The obligation to withhold and remit taxes lies with the customer in accordance with their local laws.
Learn about withholding tax and how it might apply to your HubSpot invoices if your business is located in certain Latin American countries, including country-specific information and answers frequently asked questions to help you understand your obligations.
What is withholding tax?
Withholding tax is a portion of a payment that customers in some Latin American countries are legally required to deduct when paying for services from foreign companies like HubSpot. This deducted amount must then be sent by you, the customer, directly to your local tax authorities.
Why might you be deducting withholding tax from your HubSpot invoice?
The tax laws in your specific Latin American country may require you to withhold a percentage of your payment to HubSpot and remit it to your local tax authorities. This is a legal obligation for you as the customer, based on your country's regulations regarding payments to foreign entities. HubSpot doesn't automatically deduct this tax. It's your responsibility to understand and comply with your local tax laws.
Country-specific withholding tax rates and important considerations
Below is a breakdown of withholding tax information for specific countries in Latin America.
Please note: tax regulations can change, so it's always best to consult with your local tax advisor for the most up-to-date information.
| Country |
Withholding tax rate |
Important considerations |
| Argentina |
31.5% |
This is a separate tax paid by the customer, and it can't be deducted by Hubspot. |
| Bolivia |
12.5% |
|
| Brazil |
15% |
Customers should not withhold more than 15% (IRRF). Deductions for Pis (1.65%), Cofins (7.60%), and ISS (2.90%) aren't permitted as HubSpot doesn't have a physical office in Brazil. |
| Chile |
35% or 16% |
- Companies that apply withholdings are usually exempt from VAT.
- 16% Withholding Process: companies in Chile may issue a purchase invoice against the HubSpot invoice, adding 19% VAT to 84% of the HubSpot invoice total (which effectively results in a 16% withholding on the total).
|
| Colombia HubSpot has a registered entity in Colombia and therefore must comply with local government requirements, and operates as a self-withholding tax agent in Colombia. |
- Retefuente: 3.5% (No longer applicable).
- ReteIca: 0.966% (Still applicable in some cases).
- ReteIva: 15% (No longer applicable).
|
Currency: Colombian Pesos (COP). Documentation required: As of January 2025, customers must pay HubSpot bills in full without deducting income tax. |
| Costa Rica |
25% |
|
| Dominican Republic |
Generally 27% |
|
| Ecuador |
25% |
|
| El Salvador |
20% |
|
| Guatemala |
5% for certain services, 25% for others |
|
| Honduras |
10-25% |
|
| Mexico |
10% |
HubSpot believes its services qualify as business profits under Article 7 of the US/Mexico income tax treaty, suggesting withholding tax (WHT) shouldn't apply. |
| Nicaragua |
15% |
|
| Panama |
12.5% |
|
| Paraguay |
15% |
|
| Peru |
30% |
|
| Uruguay |
12% |
|
Frequently Asked Questions
I have a monthly subscription. Can I deduct withholding tax?
Withholding taxes can't be deducted for subscriptions with automated credit card payments. To deduct withholding tax, consider switching to a quarterly, semi-annual, or annual billing cycle and paying via wire transfer. Contact your HubSpot Contract Manager to explore this option.
What do I need to do after I've deducted withholding tax from my HubSpot payment?
To ensure your invoice is processed correctly, please email proof of payment showing the deducted withholding tax amount, along with the official withholding tax certificate issued by your local tax authority (if applicable), to billing@hubspot.com. Please include your Hub ID and the relevant invoice number in your email.
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