Global

Details

  • Service: Tax, Global Indirect Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 12/11/2013

Mexico - Tax reform laws are published; effective date 2014 

December 11:  The last economic legislative package including tax reform provisions was published today in Mexico’s official gazette (Diario Oficial de la Federación).

The new law includes measures that may affect multinational entities with current or planned operations in Mexico, including:


  • Repeal of the single business tax (IETU)
  • Imposition of a 10% tax on dividends
  • A limitation on deductions
  • Changes to the foreign tax credit regime
  • Changes to the tax consolidation regime
  • Limitations imposed on the maquiladora regime
  • Changes affecting capital gains and pension funds
  • Value added tax (VAT) and “special tax” on fossil fuels

Background

In October 2013, the economic package for fiscal year 2014—including tax reform—was approved by the Mexican Congress. Under Mexico’s rules for enactment of this legislation, the executive branch must approve the economic package and then arrange for it to be published it in the official gazette.


During November and December, 2013, some reforms were published in the official gazette, and as expected, were published without significant changes. These reforms will be effective 1 January 2014.

List of laws now enacted

The following chart lists the most relevant laws approved and published in the official gazette. These laws have an effective date of 1 January 2014.


Law Approved by Mexican Congress Published in the Official Gazette
Revenue Law 31 October 2013 20 November 2013
Federal Tax Code 29 October 2013 9 December 2013
Income Tax Law 31 October 2013 11 December 2013
Value Added Tax Law 31 October 2013 11 December 2013
Single Business Tax Law (repealed) 31 October 2013 11 December 2013
Tax on Cash Deposits Law 31 October 2013 11 December 2013
Special Tax on Production and Services Law 31 October 2013 11 December 2013

Law Approved by Mexican Congress Published in the Official Gazette
Federal Rights Law 31 October 2013 11 December 2013
Customs Law 29 October 2013 9 December 2013
Tax Coordination Law 29 October 2013 9 December 2013
General Government Accounting Law 29 October 2013 9 December 2013


For more information, contact a tax professional with KPMG’s Mexico tax center:


Jose Manuel Ramírez

+1 212 872 6541


Or contact a tax professional with the KPMG member firm in Mexico:


Catherine Thibault

+52 55 5246 8474




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Washington, DC 20006.

 

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