Click here to read the entire 2020 Mexico Special Focus guide
Mexico has entered into a period of tax transformation.
Despite calls from the market, the lead-up to the changes has taken time. In fact, in 2019, Mexico was ranked 36th out of 36 OECD countries in terms of tax revenue-to-GDP ratios, achieving just 16.1% compared with the OECD average of 34.3%.
This proved to be the final straw as sweeping changes were introduced, particularly in reference to strengthening compliance, improving revenue potential, and challenging base erosion and profit shifting.
As Mexico’s leaders bring the tax transformation over the line, the demand for expert guidance remains high. The harsh impact of the COVID-19 pandemic means that authorities and taxpayers have additional challenges ahead.
Partnering with three leading firms who are closest to the action, ITR brings you practical insight, in English and Spanish, into some of the most significant recent developments from the Mexican tax world.
The federal regime to ensure the adequate disclosure of operations that qualify under the term ‘reportable schemes’ is the subject of Chevez Ruiz Zamarippa’s article. The domestic reform reflects guidance set forth by Action 12 of the BEPS Action Plan.
The article by QCG Transfer Pricing Practice discusses the method and results behind an innovative, comparative analysis created to evaluate the returns of companies located in both emerging and developed economies. The ‘country risk adjustment’ study looks at whether there is a positive correlation between location and returns, and whether the formula used corresponds to theoretical-economic assumptions.
Meanwhile, the article from Skatt provides a comparative study of Mexico’s tax-related response to the coronavirus pandemic, in contrast with international efforts. Guidance from the OECD and examples of bespoke strategies from around the world are evaluated against Mexico’s rather reserved approach.
We hope that you enjoy hearing from the tax leaders at the front of the evolution in our Mexico Special Focus.
Click here to read the entire 2020 Mexico Special Focus guide