• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 11/4/2013

Mexico - Tax reform measures are passed 

November 4: Mexico’s Congress on 31 October 2013 passed an economic package for the 2014 tax year, including certain anticipated tax reform provisions.


  • The law repeals the IETU (single business tax), certain “emergency provisions” in the income tax law, and the tax on cash deposits.
  • The tax changes in the new law include the imposition of a special tax imposed on sales of “junk food” at a rate of 8%.
  • Among the changes concerning the value added tax (VAT), there are new VAT measures imposed on education services, home sales, and mortgage interest. However, the proposed VAT on food and medicines was rejected during the legislative process.
  • Another measure (that was rejected by the Congress) would have allowed the tax authority to consider the economic substance of tax transactions.
  • A revenue raising provision imposes a new income tax on dividends and profits distributions.

Read a November 2013 report (Spanish) [PDF 462 KB] prepared by the KPMG member firm in Mexico: Reforma Fiscal 2014

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