According to a media report on 23 December 2013 Mexico’s tax reform bill, which includes measures affecting the direct and indirect taxation of corporate taxpayers, has been published in the country’s Official Gazette, completing the enactment procedures.
The reforms, passed by Congress in October 2013, cancel a phased cut in corporate income tax, enacted under previous legislation. This would have cut corporate tax by 1 percent to 29 percent in 2014 and by a further 1 percent to 28 percent in 2015. However, as a result of the new bill, corporate tax will remain at 30 percent in 2014 and subsequent years. A 10 percent tax will also apply to dividend payments made by Mexican resident companies to non-treaty countries and capital gains realized from the sale of shares listed on the Mexican stock exchange from next year. However, the 17.5 percent alternative minimum tax, also known as the “flat tax,” or IETU, has been abolished.
