Mexico’s congress approved, with some adjustments, the package of tax reforms for 2020 that was submitted by Mexico’s president Lopez Obrador on September 8, 2019. The final package now needs to be signed by the president, which is likely to happen shortly. Most of the provisions of the 2020 Tax Reform will be become effective as of January 1, 2020.
The Reform consists of significant provisions that may affect multinationals that operate in Mexico. Mexico continues incorporating the recommendations included in the OECD’s BEPS project. To avoid surprises, corporates should examine the financial structures and cross-border transactions with Mexican affiliates.
Important changes in the Reform include, among others:
Earlier this month, IMF requested Mexico to accelerate the implementation of the tax reforms.