The Executive branch of Mexico’s federal government presented, on September 8, the 2020 Budget to Congress (‘2020 Budget’). The 2020 Budget includes proposed changes to the Income Tax Law (MITL), the Value Added Tax Law (VATL), the Excise Tax Law (IEPS) and the Federal Fiscal Code (FFC), among others. The House of Representatives has until October 20 to discuss and approve the 2020 Budget. Both the House and Senate then have until October 31 to align and approve the final 2020 Budget.
The proposed changes to the tax law include significant new provisions, including a focus on aligning Mexican tax law with the OECD’s BEPS initiative, the taxation of the digital economy, and a new obligation for reportable transactions.
US Tax Marketing Leader, PwC US