On December 9th, 2019, it was published in the
Official Gazette a Decree whereby: (i) the Income Tax Law (ITL),
(ii) the Value Added Tax Law (VATL), and the (iii) Federal Tax Code
(FTC) were modified. These amendments came into effect on
January 1st, 2020.
The most relevant modifications are the following:
Income Tax Law
a. Permanent Establishment (articles 2
to 3 of the ITL):
- The Permanent Establishment (PE) concept was broadened,
considering that a PE will be constituted even if that individual
does not have a business place in Mexico, when a non-resident does
commercial acts in the Mexican territory through a person other
than an independent agent, when he normally concludes or leads to
the conclusion of agreements by the non-resident and carry out the
following:
