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Mexico: Tax provisions in miscellaneous resolution for 2020

Mexico: Tax provisions in miscellaneous resolution 2020

Mexico’s tax measures for 2020 (Resolución Miscelánea para 2020) were published in the official gazette in late December 2019 and include rules about the following tax provisions.


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  • Concerning value added tax (VAT)—a 6% VAT withholding rate generally applies for certain services (except in the northern border region, the VAT withholding rate for certain services is 3%).
  • Concerning income tax law (LISR)—two new rules reflecting provisions with respect to certain foreign transparent entities; one new measure concerning the annual tax return process; and an increase in the rate of interest for income tax purposes.
  • Concerning fiscal code measures—a rule requiring taxpayers providing supplies to any governmental body or authority to provide proof of their compliance with their tax obligations.

There are new measures regarding the taxation of digital services that have an effective date of 1 June 2020. There are rules requiring registration by foreign entities that do not have a permanent establishment in Mexico and that provide digital services to customers in Mexico. The tax authority will regularly publish a list of foreign entities that are registered under these rules. Also, the measures address what information must be provided on sales receipts. Lastly, the provisions address how entities that fail to register can resolve their VAT liabilities.

Other measures address the tax treatment of digital intermediation services (that is, digital platforms) between third parties. Again, the rules require registration by 1 June 2020, as well as subsequent reporting requirements.

A separate measure provides rules for natural persons (individuals) who dispose of goods, provide services, or offer accommodations through the use of digital platforms.

Read a January 2020 report (Spanish) prepared by the KPMG member firm in Mexico

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