close
Share with your friends

Mexico: Update on tax reform for 2020

Mexico: Update on tax reform for 2020

Mexico’s Congress on 31 October 2019 approved the tax legislation for 2020—legislation that includes amendments to the income tax law, value added tax (VAT) law, and the special tax on production and services, among other items.

1000

Related content

With regard to international tax provisions, the legislation reflects changes to the income tax law that generally reflect the base erosion and profit shifting (BEPS) recommendations of the Organisation for Economic Cooperation and Development (OECD) with regard to:

  • The concept of permanent establishment
  • Rules concerning credits for tax paid to other countries
  • Hybrid mismatch rules
  • Measures concerning private equity managers
  • Measures denying deductions for certain payments made to related parties located in “low tax” jurisdictions, regarding certain payments made through structure agreements, or payments made with respect to intangibles
  • Amounts or revenue from fiscally transparent entities
  • Rules relating to deductions for payments for labor subcontracting agreements
  • New limits for interest deductions
  • VAT imposed on certain services provided via digital platforms

Read a November 2019 report (Spanish) [PDF 256 KB] 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.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal