{{vm.title}}
25{{vm.includesText}}
{{item}}
{{vm.selectText}}
{{ vm.welcomeLabel.trim() }},
{{ vm.userName }}
{{ vm.text }}
{{vm.newUser1}} {{vm.newUser2}} {{vm.newUser3}} {{vm.newUser4}}
{{ vm.unknownUser }}
{{ vm.title }}
{{ vm.title }}
{{ vm.title }}
- {{ vm.siteSelectorList.flyout.cell1.heading }} {{ site.countryLocale }} {{ vm.siteSelectorList.flyout.cell1.global.countryLocale }}
{{ vm.closeTabLabel }}
- {{ vm.flyout.cell2.title }} {{ vm.flyout.cell2.newTabAllow }} {{ vm.flyout.cell2.title }}
- {{ vm.flyout.cell3.title }} {{ vm.flyout.cell3.newTabAllow }} {{ vm.flyout.cell3.title }}
- {{ vm.flyout.cell1.viewAll.label }} {{ vm.flyout.cell1.viewAll.newTabAllow }} {{ vm.flyout.cell1.viewAll.label }}
Mexico: Proposals for taxation of digital platforms
Mexico: Proposals for taxation of digital platforms
A proposal concerning the taxation—including the value added tax (VAT) treatment—of services provided by digital platforms (in particular, foreign-based digital platforms) was published by the lower chamber of the Mexican Congress.
A legislative explanatory statement notes the rapid development of the digital platform business model, as well as the challenges encountered in taxing those that sell goods and services digitally (versus those that sell goods and services from fixed premise locations). The proposal also considers factors identified by the Organisation for Economic Cooperation and Development (OECD) with regard to the taxation of the digital economy.
As proposed, there would be provisions enacted to allow for the appropriate collection of tax and VAT in Mexico:
- Entities without an establishment in Mexico but that provide services to persons or entities in Mexico through a digital platform would be required to withhold tax or, alternatively, to pay the amount of tax themselves.
- If the foreign-located digital platform were to withhold tax, the amount of withholding would relate to the total amount paid (including commission for the service provided by the platform as well as the actual price of the service).
The proposal does not, as drafted, provide a transition regime on transactions entered into before the effective date. It would appear that a reasonable amount of time would be needed for financial systems to be revised to reflect the new measures. It is anticipated that during the congressional consideration of the proposal, there could be modifications approved by the Congress.
Read a September 2019 report (Spanish) prepared by the KPMG member firm in Mexico
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.
