The 2014 tax reform provisions have brought significant changes to the tax system in Mexico. New changes will affect both business and individual taxpayers. In response, taxpayers have filed for injunctive relief against certain measures under the recently enacted tax provisions. This is a provision whereby under Mexico’s Constitution taxpayers may challenge the constitutionality of tax law amendments.
There has recently been speculation as to whether the Mexican government (executive branch) and different business organizations would reach an agreement for “tax certainty” concerning the tax reform provisions. A tax certainty agreement has now been reached. This is a commitment of Mexico’s federal executive branch, together with the Mexican State governments, to strengthen “economic certainty,” and to encourage investment and economic growth because of the stability of the tax rules.
With this tax certainty agreement, the Mexican government has agreed:
-To exercise the efficient and transparent spending of public resources;
-Not to propose any new taxes, not to amend the energy law and not to propose increases to the tax rates or modifications to benefits and tax exemptions granted to taxpayers (unless there is an economic situation requiring action); and
-Mexico’s federal government also expressed its commitment to address tax evasion and to promote the economy.
The tax certainty agreement was unveiled in late February 2014, and the agreement is to be effective until 30 November 2018.
