Mexico's Bill Proposal To Tax

On September 6, 2016, a bill for amending certain provisions of the Mexican Income Tax Law was introduced by congressman Jorge Álvarez Máynez of the Movimiento Ciudadano party.

The bill aims to tax inheritances and donations based on the amount of income received. For such, it proposes levying individual taxpayers with a progressive rate as follows:

1. Gross income below $10 million pesos would be exempt.
2. Gross income between a $10 and up to $50 million threshold, would be levied with a 10% tax.
3. Gross income ranged between $50 and $100 million pesos, would be levied with a 20% tax applied over amounts exceeding the 50 million threshold (item II above).
4. Gross income exceeding $100 million pesos would be levied with a 30% tax applied over amounts exceeding the referred thresholds (items II and III above).