On September 8, 2019, the Federal Executive Branch submitted to
the Mexican Congress the Tax Bill for 2020, under which several
amendments to the Income Tax Law, Value Added Tax Law, Special
Production and Services Tax Law and Federal Tax Code are
proposed.
After following the corresponding legislative process, on
October 31 the Mexican Congress approved the amendments proposed by
the Executive Branch, which will be published in the Federal
Official Gazette and will mostly enter into force on January 1th,
2020.
In general terms, the amendments approved have as their main
objective to incorporate the recommendations issued by the
Organisation for Economic Cooperation and Development (OECD) to the
Mexican tax legislation, establishing rules to tax the digital
economy, tackle tax avoidance through aggressive tax planning and
simulated acts, as well as to strengthen the faculty of the tax
authority for such purposes.
