Mexico published the Federal Revenue Law for 2016 (the Decree) in the Official Gazette on 18 November 2015 and the decree will be effective from 1 January 2016. The main requirements are given below:
Tax Incentives: Tax incentives are available for public and private ground transportation activities; new automobiles; natural gas importation from customs processing fees.
Withholding tax: For the year 2016, the withholding tax rate regarding interest payments made by banks and broker-dealers to residents will be 0.50%.
Interest on late payments: Interest levied at 0.75% per month on the outstanding balance and installment payments for 1.00%, 1.25% and 1.50% per month with respect to, depending on the number of allowed installments.
