09 December 2019 Mexican tax reform for 2020 enacted The tax reform significantly changes Mexico's Income Tax Law, which could affect multinationals' operations in Mexico. Mexico enacted the final economic package (the Reform) through publication in the Official Gazette on December 9, 2019. President Lopez Obrador signed the Reform on December 6, 2019. Most of the Reform will be effective January 1, 2020, with exceptions for the digital services rules and certain rules on fiscally transparent entities, which have their own effective dates. For more information on the tax reform, see Tax Alert 2019-1967. The Reform has significant tax provisions that may affect multinationals operating in Mexico. Most of the changes are aimed at strengthening compliance with the existing tax structure and challenging base erosion and profit shifting (BEPS). Businesses should take a close look at financing structures and cross-border transactions with Mexican affiliates to avoid surprising results in the form of non-deductible payments or additional compliance obligations.
Document ID: 2019-2163 | |||||||||||||||||||||||||||
