Mexico: Tax proposals concerning financial sector

Mexico: Tax proposals concerning financial sector

Among the items presented to the Congress by the Executive Branch in its September 2015 economic package for fiscal year 2016 are proposals to revise the withholding rate that applies with respect to interest income related to the rules for retention of capital by financial institutions. As proposed, that rate would be 0.53% for 2016 (whereas during the last five years, that rate has been 0.60%). The “retention rate” for payments relating to certain foreign banks would be 4.9%.

Related content

Other measures that would affect financial institutions include proposed changes to the definition of “regulated multiple-purpose financial institutions” (Sociedades Financieras de Objeto Múltiple Reguladas); changes to the deduction limits for pension plan, retirement plan, and personal savings accounts for retirement; a proposed repatriation program of funds held abroad; and measures to implement FATCA and Common Reporting Standard (CRS) regimes.

 

Read a September 2015 report (Spanish) prepared by the KPMG member firm in Mexico: Modificaciones fiscales para el Sector Financiero

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform