Tax incentives regarding income tax and value added tax
On June 28, 2024
The Executive Branch, through the Federal Official Gazette (DOF for its acronym in Spanish), published the Decree on fiscal benefits and administrative facilities regarding Income Tax (IT) and Value Added Tax (VAT), in order to promote economic growth in the State of Yucatan through the Progreso I and Merida I Industrial Wellbeing Poles.
Mexican supreme court rules on the limit to profit sharing for employees
The Second Chamber of the Supreme Court of Justice of Mexico resolved, under the constitutional shelter appeal 633/2023 (“Amparo Trial” in Spanish), the constitutionality of section VIII of article 127 of the Federal Labor Law and the Guide for complying with profit sharing obligations (the “Guide”), issued by the Ministry of Labor and Social Welfare.
Improvements to the 2023 annual statement for legal entities
On January 4th, 2024, the new application for the Annual Income Tax Statement for Legal Entities (“Annual Statement”) was published on the Tax Administration Service (“SAT” for its acronym in Spanish) portal, with significant improvements to facilitate compliance with this obligation, among which the following points stand out:
Increase in the minimum wage in Mexico for the year 2024
On December 12, 2023, a resolution issued by the Council of Representatives of the National Minimum Wage Commission was published in the Federal Official Gazette, which established the new general and professional minimum wages effective as of January 1, 2024.
On August 15, 2023, the Mexican Executive Branch temporarily amended, pursuant to Article 131 of the Mexican Constitution, several applicable tariffs to products set forth in the Tariff of the Law of General Import and Export Taxes dated June 7, 2022. The temporary increases could increase from 5% up to 25% in import tariffs for 392 products
The Ministry of Finance and Public Credit introduced Mexico ́s sustainable taxonomy
During the 2023 Banking Convention in Merida, Yucatan, the Undersecretary of Finance presented Mexico’s Sustainable Taxonomy, which was developed by more than 200 technical experts from a range of industries, different sectors, and international organizations.
Supreme Court removes acreditation of VAT in compensations
On March 15, 2023, the Supreme Court of Justice of Mexico established a core precedent where the civil compensation is not a form to extinguish obligations between creditor and debtor, nor a mean of payment of Value Added Tax (Hereinafter “VAT”) for its accreditation and refunding.
Nearshoring: explaining the business model that concentrates 80% in Mexico.
According to Jair Bravo, managing partner of the Law Firm Bravo Abogados, Mexico is the fourth most attractive country for nearshoring investments, surpassed only by Japan, Canada and the United States. The spokesperson informed that thanks to its geographical location, Mexico concentrates 80% of the nearshoring market at a global level.
Second Resolution of Modifications to the Miscellaneous Tax Resolution for 2023: First Anticipated Version
On February 28, 2023, the Tax Administration Service (hereinafter “SAT” for its acronym in Spanish) published the first anticipated version of the Second Resolution of Amendments to the Resolution to the Tax Miscellaneous Resolution for 2023 (hereinafter “RMF” for its acronym in Spanish).
Foreign investors are protected in Mexico by a series of International Treaties executed by and between Mexico with several sovereign countries around the world.
