Mexico tax reform

José Carlos Silva and Jorge Ramón Galland Ríos look at the provisions in the reform with a focus on those which address BEPS-related measures and tax evasion. In general, the tax reform measures reflect changes to certain provisions of Mexico ’s income tax law, the value added tax (VAT), the excise tax law, and the Federal Fiscal Code. Modifications to the Mexican Tax Law most relevant for inbound investment into Mexico are summarized below. Foreign companies doing business in Mexico must be aware of this new legislation and should analyze current structures to avoid unpleasant surprises. Appoint a legal representative and tax domicile in Mexico before the Tax Administration Service.

Obtain and electronic signature.

Tax mailbox (article 17-K of the FTC): All taxpayers must enable their tax mailbox and provide and keep updated the means of. On this note, it is worth mentioning that the Tax Reform was justified based on the need to simplify and control income tax payment in Mexico by concentrating tax payment obligations on one party, that is, focusing on the entity or vehicle receiving the income and not on each of its members that were the beneficial owners of such income. The Package includes, among others, the Federal Revenue Law initiative, the initiative that reforms several tax provisions and the Federal Expenditure Budget. The modifications included in the Economic Package are not final, since they will be subject to discussion, modification and.

Contributing Author - Hugo Rivera, Pasante, Haynes and Boone. The Reform has significant tax provisions that may affect multinationals operating in Mexico. Most of the changes are aimed at strengthening compliance with the existing tax structure and challenging base erosion and profit shifting. By Ricardo Rendón (Partner, Chevez, Ruiz, Zamarripa y Cía, S.C., Mexico ).

The new tax reform legislation provides tax cuts for individuals and companies and should result in positive economic growth,” Allsup’s said. The company operates 3stores in New Mexico , West Texas and Oklahoma and employs 2full-time and part-time employees. It did not say how many of its employees received a bonus this week. The reform includes numerous tax law changes aimed at strengthening tax compliance and challenging perceived base erosion and profit shifting.

The broad-based reform , which was approved by the Senate on October, contains a number of measures that will affect companies doing business in Mexico. What about the repeal of the Single Rate Business Tax and the Cash Deposit Tax ? Barrera: The theory behind the tax on dividends is that developed countries have higher tax rates than Mexico and therefore foreign taxpayers will be able to take a tax credit on the taxes paid in Mexico against their own taxes. The truth is not that simple, as they.

Fiscal reform under way in the United States will have an impact on the Mexican economy, above all because Mexico has little room to adjust its own tax rates, the head of a United Nations economic. Even though the Tax Reform affects a wide range of taxpayers in Mexico and outside of Mexico , in this document we will comment only on the main implications of the Tax Reform for the maquiladora manufacturing industry in Mexico. If the tax advisor does not report the tax scheme, the obligation will be transferred to the taxpayer.

The scope of this plan includes online sales to customers based in Mexico. This new tax reform does not distinguish between B2B and B2C transactions and therefore, this rule would apply to all suppliers. The ICLG to: Corporate Tax Laws and Regulations - Mexico covers common issues in corporate tax laws and regulations - including capital gain, overseas profits, real estate, anti-avoidance, BEPS and the digital economy - in jurisdictions. The benefits from this proposal are to improve competitiveness in Mexico in relation with the tax reform in the USA, and to improve environmental competitiveness.

The New Mexico House of Representatives approved a sweeping tax reform bill late Friday night that would generate at least $3million more each year for the state’s general fund. The proposal would raise income taxes on families making at least $2500 raise gasoline taxes and levy gross receipts taxes on all online sales. Now, with respect to the tax reform specifically, it continues to shut down alternative planning strategies and options in an effort to increase tax revenue in Mexico , but without any legal guarantees for the privacy, personal integrity, and financial security of the taxpayers and their families.

Flat tax and tax on cash deposits. The dividend tax will be imposed at the shareholder level (unlike the executive branch proposal to impose the tax at the distributing company level). The tax reform package repeals the flat tax and tax on cash deposits. The tax rate will be of the gross dividend amount, subject to reduction pursuant to one of the double tax treaties Mexico has in force.

Editor’s note: This week, CPA Moses Man discusses elements of the Tax Cuts and Jobs Act related to international tax reform , focusing on those tax law changes that impact small multinational businesses. This blog post highlights the key changes in international tax laws under the Tax Cuts and Jobs Act. KPMG professionals will discuss these tax changes, what to be aware of and how to plan ahead. But to get tax reform before the House and Senate this fall, Congress will first have to sort through a contentious budget fight.

So far, that massive battle is looming in the distance.