On 18 October 2019 the Chamber of Deputies of Mexico's
Congress of the Union approved the proposed amendments to current
tax laws (the Amendments), further approved by the
Senate on 24 October.
The Amendments add to or repeal various provisions of the Income
Tax Law, Value Added Tax Law and the Federal Tax Code, as well as
the special tax on production and services.
Key highlights
Income Tax Law
From 1 January 2020 the Income Tax Law will reflect the concept
of permanent residence in line with the recommendations of Action 7of the OECD's Base Erosion and
Profit Shifting project, to combat hybrid structures making use of
exemptions in preferential tax regimes and tax avoidance
strategies.
