According to the projections of the Bank of Mexico, the rate of inflation for 2018 could be between 4.5% and 5%, and the gross domestic product could increase 2.5%. Considering the current economic environment and several international factors, corporate management of Mexican entities may want to consider the implications of these projections on their tax situations.
For instance, corporate management may want to analyze the provisional payments of corporate income tax (ISR). If such tax payments would be greater than the actual amount of the tax liability, it may be prudent to reduce the payments of tax made in the second half of the year including the provisional payment for July 2018.
Other considerations for corporate management may be for possibly deducting the cost of the estimated sales corresponding to the receipts of advance sales amounts received in this fiscal year; evaluating the viability of making dividend distributions or making capital reductions; reviewing the status of any current tax litigation or tax audits, among other action steps.
Read a July 2018 report (Spanish) prepared by the KPMG member firm in Mexico
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