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Mexico: Noteworthy Tax Notes for Fiscal Year 2013 Although a Federal Administration under a new President commenced a six-year term on Dec. 1, the incoming President has not yet sought relevant amendments to the federal tax laws. It is expected that the new Administration shall make its bid for important tax changes in the course of 2013; whether to take effect during 2013 or as of 2014 remains to be seen. This notwithstanding, certain points, whether tax-related or otherwise, merit the following brief comments for 2013:
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Income Tax Rate – The corporate income tax rate, slated to reduce from 30% to 29% for 2013, will remain at 30% for such calendar year. Unless new amendments are made, the rate shall be 28% as of 2014. Withholding Rate for Registered Banks – The 4.9% income tax withholding rate on interest applicable to non-resident banks that register in Mexico will continue to apply in 2013, if certain requisites are met. New Postponement of the Interest Taxation Regime for Individuals – Such new regime, announced since the end of 2009, will still not come into effect in 2013, and its idealness may be subject to review by the incoming Administration. An important change is expected in all aspects of the regime, and principally for those pertaining to insurance plans. Tax Credit Forgiveness – A tax credit forgiveness regime has been established for 2013. This “Tax Amnesty” is similar to those approved at the beginning of prior Administrations. FATCA – The tax authorities of Mexico and the United States entered into agreements to facilitate the mutual exchange of information, with a view to allowing the U.S. authorities the receipt of the information they seek to obtain from foreign banks under FATCA (“Foreign Account Tax Compliance Act”), while the Mexican authorities receive information of bank accounts held by Mexican nationals in the U.S. Labor Law Amendments: Outsourcing. New requisites were established for outsourcing, which if not met will result in the party that hires the outsourced services being considered as employer of the outsourced workers for all purposes under the law, including social security. Other Labor Law Amendments. New modes of employment contracts are now allowed under the law (hiring under initial test or training stages, for temporary periods and under hourly wages). Liabilities for accrued wages in cases of unjustified termination being litigated before the courts are now capped at one year of accrued wages plus 2% interest, compounded when payment is due. Also, a required written notice of the termination of the employment is given a special role to play. Regarding economic indicators, a 3.5% GDP growth is expected, with inflation estimated to be at 3% (±1%) and the government planning a 0% deficit.
Sincerely, Despacho Parás, S.C.
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#1 21.01.2013
Publisher Despacho Parás, S.C. Bosque de Alisos No. 47-A, 2-21 Col. Bosques de las Lomas 05120 México D.F. www.paras.com.mx Editorial Team Carl Koller Tel. +52 (55) 5259-1060
[email protected] [email protected]
This issue of tax news is published Despacho Paras, member of WTS Alliance. The information is intended to provide general guidance with respect to the subject matter. This general guidance should not be relied on as a basis for undertaking any transaction or business decision, but rather the advice of a qualified tax consultant should be obtained based on a taxpayer’s individual circumstances. Although our articles are carefully reviewed, we accept no responsibility in the event of any inaccuracy or omission. For further information please refer to the authors.
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