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México Tax Reform Bill 2013

Mx TaxMéxico Tax Reform Bill 2014

Please be advised about the Mexican Tax Reform Bill package have been approved by both houses of México's congress pending to be published in the Official Gazette of the Federation to complete the enactment procedures.

Please find the main changes to corporate taxpayers on the Mexican Tax Reform Bill 2014:


Maquiladora temporary importations. Fixed VAT rate of 16% to temporary importations within the Maquiladora industry. Maquiladoras are entitled to request this tax back from the IRS upon proving the raw material have been shipped back to abroad.

Employment benefits. Deductibility on employment benefits increases the percentage of both for companies and employees from 47% to 53%.

• Shelter Maquiladora Operations. Entities of foreign residents that operate through a Shelter Maquiladora Company (Maquiladora de albergue) may remain under the protection of this rule only up to a maximum of three fiscal years.

Borderline tax. Standardizing the VAT rate within the mexican border states equals to the rest of the country from 11% to 16% VAT rate.

Maquiladora permit. The tax authority (SHCP) not the Ministry of Economy will authorize the Maquila IMMEX permits to corporations, this government entity will be empowered to audit and verify these operations.

Stock exchange tax. 10% Income tax on earnings obtained due to the purchase of shares and dividends in the Mexican Stock Exchange.

Mining tax. 7.5% tax on profits to mining companies.

Junk food tax. VAT on junk food changes from 5% to 8%. The tax on high caloric density foods (containing 275 kilocalories per each 100 grams).

Soft drink tax. Special tax on production and services (IEPS) to sugary beverages at a rate of 1.0 additional peso to the sale price per liter.

Green tax. A Tax to fossil fuels at a rate of 3% to sales. Natural gas is exempt.

Pet food tax. VAT rate of 16% for the processed food for dogs, cats and small animals, as pets for homes.

Elimination. Taking away the business flat tax Law (IETU) and the cash deposit tax Law (IDE).


Abbreviations: Vat, Value added tax; SHCP, Secteraría de Hacienda y Credito Público; IMMEX, Industria Manufacturera, Maquiladora, y de Servicos de Exportación; IEPS, Impuesto Especial de Producción y Servicios; IETU, Impuesto Empresarial a Tasa Única; IDE, Impuesto a Depósitos en Efectivo.

Notes: The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Latest tax and rules changes to the maquiadora and shelter programs: 2015 - 2016 Fiscal/Tax Amedment


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