Mexico's Congress Passes Tax Reform

The two houses of the Mexican Congress (the Chamber of Deputies and the Senate) last week passed a tax reform measure which now awaits President Enrique Peña Nieto's signature. The legislation is significantly different than the President's controversial tax overhaul proposal forwarded to Congress on September 8. If signed by the President, as expected, the new tax rules will be effective on January 1, 2014, except as noted below.

The tax reform measure is very similar to the reform measure passed by the Chamber of Deputies and forwarded to the Senate on October 17, which was the subject of a Jones Day Alert dated October 18. Set forth below is a summary of the significant changes included in the reform package as well as a description of material proposals by the executive branch which were rejected or modified by Congress.