Automotive Tax Insights: 2014 Mexican Tax Reform

The Executive Branch of the Mexican government presented its 2014 Tax Reform package to Congress.

The package’s most significant proposals would eliminate the tax consolidation regime, eliminate the Flat Tax (IETU), provide a more limited maquiladora regime, retain the 30% income tax rate without reduction, introduce a new corporate-level tax on dividends, limit the deduction of certain related party payments, and eliminate the statutory audit (dictamen fiscal) requirement.