Mexico City, August 13th, 2020. As a result of the recent Mexican Tax Reform in force as of January 2020, technological platforms owned by non-resident taxpayers with no permanent establishment in Mexico providing directly a digital service within Mexican territory, are subject to Value Added Tax (“VAT”). Also, non-resident technological platforms acting as anRead more
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Mexico City, June 9th, 2020. As a result of the tax reform in force as of January 1, 2020, the general catalog of obligations set forth in article 27 of the Federal Tax Code was fully amended, including a new brand obligation for legal entities to submit a notice in the Federal Taxpayers RegisterRead more
Mexico City, November 20th, 2019. On October 30, 2019, the Mexican Congress definitively approved important amendments to the tax regime applicable to the investment and asset management structures, which would require the review, adjustment and amendment of the same in order to comply with the new tax provisions effective as of January 1st, 2020. TheRead more
TAX INCENTIVES TO ELIMINATE THE TAX WITHHOLDING ON INTEREST PAID ABROAD AND TO ENCOURAGE PRODUCTIVE INVESTMENT PROJECTS IN MEXICO An executive order to eliminate the income tax withholding for interest paid abroad on bonds listed in a stock exchange, as well as to grant tax incentives to taxpayers investing in a capital market in MexicoRead more
Incorrect Transfer of Tax Losses On June 1st, 2018, several amendments to the Federal Fiscal Code have been approved by the Federal Executive with respect to the transfer of tax losses. In this regard, a new anti-abuse rule regarding the transfer of tax losses was added to the Code in the context of businessRead more
Declaration of Special Economic Zones (“SEZs”) On September 29, 2017, the Executive Branch published in the Federal Official Gazette declarations of the first three SEZs, located in Chiapas, Veracruz, Michoacan and Guerrero. Read More The Executive Branch published on September 29, 2017 declarations of the first three SEZs: (i) Puerto Chiapas, (ii)Read more
On October 14, 2016, the Tax Administration Service (“SAT”) and its U.S. counterpart, the Internal Revenue Service (“IRS”), sent similar press releases to announce the culmination of two years of collaboration to establish a new transfer pricing procedure to avoid double taxation in the maquiladora industry. This new framework proposes to solve more than 700Read more
On September 6, 2016, a bill for amending certain provisions of the Mexican Income Tax Law was introduced by congressman Jorge Álvarez Máynez of the Movimiento Ciudadano party. The bill aims to tax inheritances and donations based on the amount of income received. For such, it proposes levying individual taxpayers with a progressive rate asRead more
