FISCAL REFORM APPROVED BY 2021

24/10/2020

INFORMATION OF GENERAL INTEREST.

Finally, on November 5, the Tax Reform package for 2021 was approved by the Chamber of Deputies, after said package was returned by the Chamber of Senators after having made some adjustments to what was originally approved by the Deputies.

The main changes that were made during the legislative process to the original initiative of the Executive, are related to the following:

• The proposal of establish complementary quotas for automotive fuels.
• The proposal to incorporate the use of technological tools by the tax authority, such as photographic and video cameras, tape recorders, cell phones or others, was rejected.
• The income tax withholding scheme foreseen for the sale of goods or the provision of services through technological platforms was modified, establishing the application of a single rate per activity.
• The sanction of the temporary blocking of access to the digital service, for residents abroad without an establishment in Mexico that provide digital services, when they fail to comply with the obligations to retain and pay income tax for 3 consecutive months.
• An income cap of 75 million pesos was established, so that individuals can assimilate the income provided for in sections IV, V and VI of article 94 of the Income Tax Law into salaries.

Once the fiscal package was approved, the Executive took turns for publication in the DOF, which is still pending.

Below we present what we consider to be the most relevant of the Federation’s Income Law for 2021, as well as the main reforms approved to the Income Tax, Value Added Tax and Federation Tax Code laws.