Mexico: Tax proposals concerning financial sector | KPMG | GLOBAL

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%.


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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

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