Mexico: Tax offset rules for 2019 - KPMG Global
close
Share with your friends

Mexico: Tax offset rules for 2019

Mexico: Tax offset rules for 2019

Mexico’s executive administration in late 2018 presented to the Congress an economic package for the fiscal year 2019 that included certain initiatives, but did not propose new taxes or any tax rate increases, but did provide for adjustments to current tax standards.

1000

Related content

The legislative package was approved in late December 2018 by the Chamber of Deputies and the Senate. 

The tax provisions in the legislation provided that effective 1 January 2019, taxpayers could offset certain tax balances related to the same type of tax. Concerning value added tax (VAT), the use of balances generally is limited to credit in subsequent months. This rule is effective for taxes imposed under the income tax law during 2019. 

In general, this measure will affect taxpayers that usually generate favorable tax balances. Taxpayers that typically have balances in their favor, for example concerning VAT, were required to use their own resources or seek financing to pay amounts of other taxes (such as provisional income tax (ISR) payments or the amounts that they would have withheld in the ISR from their employees or suppliers) prior to the offsetting measure. The new provision generally is expected to help the financial position and cash flow of eligible taxpayers.  The tax administration (SAT) also is to issue rules to allow greater flexibility with regards to refunds for those taxpayers that meet certain requirements.


Read a December 2018 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.

Connect with us

 

Want to do business with KPMG?

 

Request for proposal