A recent decision from Mexico’s Supreme Court of Justice declared a provision of the tax law to be unconstitutional. The provision related to pro-rata expenses incurred abroad relating to natural or legal persons that are not Mexican taxpayers. Until 31 December 2013 no tax deduction was available in respect of these expenses. This legal decision has transfer pricing implications as it will need to be taken into account multinational groups when allocating the fees for intra-group services between members of the group.
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