This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate tax liabilities, tax treaties, free trade agreements, and other investor considerations. This chapter contains an interview with Ricardo González Orta, Partner, Deloitte México.…
Companies and individuals doing business in Mexico are subject to federal, state and local taxes. Federal taxes in Mexico include direct taxes (corporate and personal income) and indirect taxes, which comprises value-added tax (VAT), excise taxes and Customs duties. Property tax, real estate transfer tax and payroll taxes are the most significant categories among state and local taxes. Tax Policies The…
Viewpoint:Ricardo González Orta The main pillars of the Mexican tax system are federal corporate and personal income tax, value-added tax, excise tax and foreign trade tax, as well as social security contributions. Since 1980 Mexico has transitioned to a system of tax coordination where it was agreed that the federal government would retain the right to collect the most important taxes while…
This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, dividend taxation, foreign operations, tax audits and other investor considerations. This chapter contains an interview with Ricardo González Orta, Partner, Deloitte México.…
The OBG Business Barometer: Mexico CEO Survey, in association with Grupo Financiero Internacciones The recent victory of Donald Trump in the US presidential election has fostered uncertainty within the Mexican business community. Hundreds of articles have been written about what could happen if NAFTA were reviewed and how Mexico would cope without its major trading partner. At this precise moment…
The principal taxes payable by commercial and industrial enterprises operating in Mexico and, in certain cases, by foreign companies and individuals, are those levied by the federal government. State and municipal governments have more limited tax powers and receive allocations of some federal taxes collected within their borders. The principal federal taxes are income tax, value-added tax, Customs…
Slow economic growth – in large part a result of oligopolistic market distortions, low productivity and financial exclusion – has characterised Mexico’s economic performance for much of the past decade. Taking office in December 2012, the government of Enrique Peña Nieto set out to boost Mexico’s competitiveness with a package of structural reforms affecting a number of sectors, including
Interview:Carlos Méndez How high are the barriers for foreign companies to break into the Mexican market? CARLOS MÉNDEZ:The Mexican government has adopted a policy of progressively reducing trade barriers to imports. Prior import licences from the Ministry of Economy are required for fewer than 1% of all the items included in the Customs tariff classifications. Naturally, however, special…
This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, dividend taxation, foreign operations, tax audits and other investor considerations. This chapter includes an interview with Carlos Méndez, Territory Senior Partner at PwC México.…
On October 31, 2013, the Mexican Congress approved a number of tax amendments for the 2014 period, which went into effect on January 1, 2014. As a result of the different measures approved, the federal government expects to receive revenue of around MXN4.4trn ($341.9bn), which is 12.82% above the 2013 revenue budget. The 2014 Federal Revenue Law used certain estimates and projections in the…
