November 28, 2022 Mexico publishes MLI in Federal Official Gazette; timeline for entry into force will be triggered once instrument of ratification is deposited with OECD
On 22 November 2022, the MLI approved by the Mexican Senate and the Mexican President was published in the Federal Official Gazette. Following publication in the Official Gazette, the MLI must be deposited with the OECD to complete the ratification and notification process. As highlighted in EY Global Tax Alerts, Mexico takes first steps to ratify MLI, dated 10 October 2022, and Mexico ratifies MLI, dated 14 October 2022, the MLI will enter in force on the first day of the month following the expiration of a period of three calendar months beginning on the date of its deposit. However, the MLI will enter into effect in Mexico with respect to taxes withheld at source at the beginning of the calendar year after the date of entering into force, such that the earliest date for this would be 1 January 2024, provided that the Mexican Government deposits the MLI with the OECD before 30 September 2023. Several consequences for multinational companies may arise once the MLI enters into force for Mexico, thus businesses should undertake a case-by case analysis to map the impact of the MLI in cross-border transactions. _________________________________________ For additional information with respect to this Alert, please contact the following: Mancera, S.C., Mexico City
Ernst & Young, LLP, Latin America Business Center, New York
Ernst & Young LLP, Latin America Business Center, Chicago
Ernst & Young LLP, Latin America Business Center, Miami
Ernst & Young, LLP, Latin America Business Center, San Diego
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin America Tax Desk, Japan & Asia Pacific
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