On 5 September 2013 the Federal Government presented
its proposal for tax reform. The main objectives of this
- Increase tax revenues by about 5 points as a
percentage of GDP or about 240 billion MXN.
- Finance a universal pension and unemployment
- Eliminate special treatments for certain industries.
- Eliminate certain taxes such as IETU and IDE.
- Reduce dependency on oil income.
The bill was passed by Congress on October 16, 2013 with
317 votes in favor and 164 against the measure.
The bill was passed by the Senate on October 31, 2013
with 73 votes in favor and 50 against the measure.
The main changes approved by this legislation are the
Taxpayers can be notified at any address where they can
When taxpayers have not disclosed their address to the
tax authorities, they can be notified at the address they
have disclosed to financial entities or to savings and loans
cooperatives, when they are users of their services.
Taxpayers with access to the tax mailbox can be notified of
any administrative act or resolution via this channel; using
Passed as it was proposed, but implementation will be
gradual. Tax mailbox will be mandatory for corporations
starting on 30 June 2014 and for individuals on 1 January
ILLEGAL USE OF TAX DOCUMENTS
Tax documents will lose their legal validity when they
support non-existent operations. Authority will be able to
assess taxes after a time period for clarifications has
Digital certificates will also lose their validity when a
taxpayer cannot be located, or when the certificates have
been used to support transactions that are non-existent,
simulated, or illegal.
FORMS OF TAX PAYMENT
The following methods will be accepted for paying taxes:
• Checks issued by the same bank where the payment is
• Wire transfers.
• Credit and debit cards, in accordance with specific
operating procedures that will be subsequently
Partners or shareholders will be personally liable for any
taxes that remain unpaid after the company’s assets or
equity have been depleted.
Partners or shareholders will be personally liable for any
unpaid taxes only when they have had control over the
management of the company, and only for those taxes
generated during the time period when they had such
TAX DOCUMENTS FOR AUTOMOBILES
Digital tax documents should contain information similar
to that found on documents issued by manufacturers,
assemblers, importers and sellers of automobiles.
Digital documents will contain such information as stated
above plus number of automobile ID and code of
When taxpayers file incomplete or erroneous information,
they will have up to 30 days after notification by the tax
authority to complete or correct such tax filing.
TAX COMPLIANCE REPORT
To eliminate the figure of an independent accountant’s
opinion on tax compliance.
The independent accountant’s opinion on tax compliance
will be optional but only for taxpayers with annual income
higher than $100 Million MXN. Accountants will be subject
to additional controls and will have to renew their
registration next year.
Establish specific limits for precautionary seizures
conducted by tax authorities.
The authority will be able to conduct precautionary
seizures for the amount of unpaid taxes as determined by
the tax authority itself.
PROFIT MARGIN ESTIMATE
Tax authorities will have the ability to estimate the tax
profit of tax payers using a general margin of 20% on gross
income, or using specific margins detailed in this article,
depending on their type of business.
Tax authorities will be allowed to publish on their website
the name and tax ID of those taxpayers that have not
complied with their tax obligations.
This will include unpaid tax liabilities, unsecured tax
liabilities, unlocated taxpayers, tax crime sentences, and
Taxpayers may request a conclusive agreement with the
tax authority, as long as the fact-gathering phase of the
procedure has been fully completed. Conclusive
agreements must be processed through the Taxpayer
Defense Attorney Office (Prodecon).
It will be considered a tax crime to “leave” or “disappear”
from the tax address without giving notification to the tax
TAX EXECUTION PROCEDURES
A term of 15 days will be granted to comply with certain
procedures such as liquidate tax liabilities, file defense
recourse, secure tax interest, etc.
The terms was extended to 30 days.
STATUTE OF LIMITATIONS
A term of ten years has been established as statute of
limitation for tax matters, including unpaid taxes.
IMMEDIATE DEDUCTION FIXED ASSETS
The option for immediate deduction of fixed assets has
been eliminated. All fixed assets will now have to be
depreciated in accordance with the depreciation rates
established in this law.
DEDUCTION OF GROCERY VOUCHERS
Grocery vouchers (vales de despensa) are a common
benefit offered by companies in Mexico. Paper vouchers
will no longer be tax deductible. For this benefit to be
deductible, it will have to be given via debit cards preauthorized by the tax authorities.
Social security contributions that are the responsibility of
the employee but paid by the employer will not be
deductible for the employer.
Deductibility limit is lowered from $175,000 MXN to
$130,000 MXN per automobile (without VAT).
Car rentals will be deductible up to a ceiling of $200 MXN
per car, daily.
Deductibility of restaurant meals will be limited at 8.5% of
the bill. In order to obtain this deduction, meals will have
to be paid by credit or debit card , purchasing card or
other electronic devices approved by the tax authorities.
Investments made during the pre-operational phase will
no longer be deductible in one fiscal year.
The benefits of the Maquiladora tax regime will only be
applicable to companies who are exporters.
Service companies will not be allowed to apply the
benefits of the Maquiladora tax regime.
New companies will have up to four years to decide if they
become permanent maquiladoras in the country. During
that period, they will qualify for most of the benefits of the
maquiladora tax regime.
INCOME TAX RATE
Income tax rate for individuals increases up to 35%
Individuals with annual income above $500,000 MXN will
be subject to a 31% rate. Those with annual income above
$750,000 MXN will have a 32% rate. Those above $1M
MXN will have a 34% rate and those above $3M MXN will
be subject to the top bracket of 35%.
LIMITS ON PERSONAL DEDUCTIONS
10% of individual’s total annual income (including exempt income)
or 4 annualized minimum salaries (approx. $86K MXN), whichever is
Donations to non-profit entities authorized by the tax authorities
will not be subject to this limitation.
Benefits that represent exempt income for the employee will only
be deductible up to 41% by the employer (although they will be fully
deductible for purposes of calculating the mandatory profit sharing).
Stricter rules are introduced to control donations made among
SALE OF REAL ESTATE PROPERTY
Income generated on the sale of a property will be exempt
up to a limit of 0.7 millions of UDIS (approx. $3.5M MXN).
The rest will be taxable at normal applicable rates.
TAX INCORPORATION REGIME
This regime aims to incorporate individuals with income up
to $4M MXN into the formal side of the economy. It
provides certain advantages such as reduced
administrative load and slightly lower tax rates.
Tax payers can live under this regime for up to six years.
Then they will have to move to the normal regime.
PROFITS ON STOCK TRADING
Profits derived from trading stock of public companies will
be subject to a tax rate of 10%.
IETU / IDE
The Impuesto Empresarial a Tasa Única (IETU, which was
similar to an alternative minimum tax) has been
The Impuesto a los Depósitos En Efectivo (IDE, which taxed
bank deposits made in cash) has been eliminated.
NEW ITEMS SUBJECT TO VAT
- Chewing gum
- Dog, Cat and other pet food.
EQUALIZATION OF VAT RATE
The special 11% VAT rate that was applicable to the cities
considered part of the “border zone” has been eliminated.
Now the general 16% VAT rate is applicable to the entire
TEMPORARY IMPORTS (IMMEX)
Temporary import of goods will no longer be VAT exempt.
It appears a certification program will be established in
order to create a way of exempting some large importers
from this new measure.
TEMPORARY IMPORTS (IMMEX)
Temporary import of goods will no longer be exempt from
this tax, in order to make it consistent with the change in
the VAT law.
It appears that a certification program will be established
in order to create a way of exempting some large
importers from this new measure.
A new tax of $1 MXN per liter will be applied on all sugary
drinks or powder used to produce this type of drinks.
A new tax of 8% on junk food has been established,
including snacks, candies, chocolates, creams, and ice
Generation of fossil energy will be taxed.
Natural gas is exempt.
Pesticides are taxed at rates that go from 6% to 9%
depending on toxicity.
Goods can be imported and warehoused free of charge for
up to two days in the tax authorities warehousing facilities.
In the case of warehouses located in maritime traffic
destinations, the term will be seven days.
Authorization to provide pre-validation services will not be
granted to companies or individuals acting as importers,
exporters or customs agents.
Requirements of the legal representative of companies
that handle import/export goods without intervention of a
- To be an individual current in all tax obligations.
- To be a Mexican national.
- To prove existence of a working relationship with
the importer or exporter.
- To prove experience or expertise in the matters of
CANCELLATION OF CUSTOMS PERMIT
More details were added on scenarios or causes by which
an individual would lose his or her customs permit:
- To allow a third party to use the customs permit for a
- To provide custom services to companies or individuals
not registered in the Importers Databases.
FINES AND PENALTIES
Specific fines are established for cases where the value
and/or description of goods and its transport or method of
marketing is misrepresented by the Customs Agent.
Penalties range from $1,420 MXN (approx. $110 USD) to
$30,000 MXN (approx. $2,300 USD).
We would be happy to discuss these and any other legal
changes with you which arise from the ambitious reform
program proposed by the Federal Government.
At present, Mexico offers great opportunities and we
would love to become your strategic partner in this
Address: Plateros 16 – 504, San Jose Insurgentes 03900, Mexico City
Tel. Office: + 52 (55) 5339 5839
Mobile: + 52 (155) 5453 6309
E-mail: email@example.com Web: www.nuricumbo.com