New Decree Granting Tax Incentives to Promote Investment in Mexico

On October 11, 2023, the “Decree granting tax incentives to key sectors of the export industry consisting of the immediate deduction of the investment in new fixed assets and the additional deduction of training expenses” was published in the Official Gazette of the Federation. The Decree entered into force as of its publication, with the […]

Mexico amends income tax law governing sales of mexican real property

On November 12, 2021, a Decree amending various provisions of the Mexican Income Tax Law and related regulations was published, effective January 1, 2022.  The Decree includes changes to article 160 of the Income Tax Law and establishes that for purposes of proceeds from the sale of Mexican real property, the source of wealth is […]

Mexico’s SCT issues updated bill of lading form for use by federal motor carriers

On December 16, 2021 the Department of Infrastructure, Communications and Transportation (“SCT” per its acronym in Spanish) issued a Decree updating the Bill of Lading form for Federal Motor Carrier Transportation and ancillary services (the “Decree”). The Decree was published in the Official Journal of the Federation in order to update the Bill of Lading […]

Mexican Tax Authorities issue “Invitation Letters” to taxpayers regarding alleged discrepancies in reporting expense deductions

Mexican tax authorities are sending notices to taxpayers inviting them to review and, if necessary, correct their tax filings (“Invitation Letters”). The Invitation Letters identify alleged discrepancies between amounts taxpayers claimed as authorized deductions and the expense and invoicing information they provided to support such deductions. It is important to review the Invitation Letter carefully […]

Mexico Creates introductory program to audit specialized services

A special tax resolution published in the Official Journal of the Federation on April 23, 2021, amends several current rules to establish that Mexican tax authorities will now disallow any credit or deductions for wages or other payments made for outsourced services that relate to the taxpayer company’s purpose and main economic activity. Once Mexico’s […]

New Rules on capitalizing liabilities for tax purposes

On December 8, 2020, Mexico published important new Miscellaneous Tax Rules amending numerous tax regulations in the Official Journal of the Federation. Article 30 of the Federal Tax Code is among the regulations amended, and the latest rules introduce new obligations with respect to maintaining supporting documents demonstrating the economic reasons behind corporate capital increases […]

Mexico Publishes Amendments to 2021 Miscellaneous Tax Resolution

On April 5, 2021, Mexico’s Tax Administration Service published  the Fifth Anticipated Version of the First Resolution Modifying the 2021 Miscellaneous Tax Resolution and its annexes 1-A and 9. The changes, published on the agency’s website, entered into force the day following their publication in the Official Journal of the Federation. Note, however, that certain […]

Mexico Issues New Requirements for Reporting Increases in Capital

For Mexican entities approving capital stock increases or decreases occurring December 31, 2020 or before, Article 30 of the Mexican Federal Tax Code provided that taxpayers were required to maintain records of all minutes and certificates relating to such transactions. However, beginning January 1, 2021, Mexican tax authorities now may require additional information from Mexican […]

Mexico Modifies Rules for Reporting Intercompany Loans between Related Companies

On January 18, 2021, the Financial Intelligence Unit (“FIU”) of Mexico’s Tax Administration Service modified applicable rules governing loans made between entities that belong to the same business group.  This provides clarity to one of the most frequently asked questions regarding so called “vulnerable transactions” and mandatory compliance with the Federal Law for the Prevention […]

Mexico Now Requires Disclosure of Aggressive Tax Planning Transactions

The Mexican Omnibus tax bill for 2020 was published in the Official Journal of the Federation on December 9, 2019. Among other changes, a new Section, “Regarding the Disclosure of Reportable Transactions,” was added to the Mexican Federal Tax Code (“CFF” for its acronym in Spanish), which sets forth a mandatory disclosure or reporting requirement […]

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