globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

13 September 2022

Mexico’s proposed 2023 Economic Package includes minimal changes to tax law

  • The 2023 Economic Package does not include any new taxes or tax reforms.

  • The focus in on strengthening the tax base by combatting tax avoidance.

  • It is expected to be effective as of 1 January 2023.

On 8 September 2022, Mexico’s Economic Package for fiscal year 2023, which details the projection of income and public spending (the Proposal), was submitted to the Congress.

The Proposal does not foresee increasing, changing or creating new taxes. Unlike most years, the Proposal does not include any reforms to the tax laws. Rather, there is a focus on strengthening the tax base by combating tax avoidance.

The Proposal includes measures intended to encourage taxpayers' self-correction by reducing the amounts of fines by 40% or 50% for noncompliance with respect to obligations related to the Mexican Tax Registry, tax filings and book keeping, depending on the time of the correction.

Furthermore, the Proposal maintains the tax incentives related to certain specific areas such as public and private ground transportation, mining, and diesel, among others.

Mexico’s two houses of Congress must debate and vote on the Proposal. This should be completed by 15 November 2022. Therefore, and although it is unlikely, changes could be expected through the legislative process. After congressional approval, the President would sign and publish the Proposal in the Mexican Federal Official Gazette. The Proposal will become law on the date of publication and should be effective as of 1 January 2023.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young, LLP (United States), Latin America Business Center, New York

Ana Mingramm | ana.mingramm@ey.com

  • Lucas Moreno | lucas.moreno1@ey.com

  • Enrique Perez Grovas | enrique.perezgrovas@ey.com

  • Jose Manuel Ramirez | jose.manuel.ramirez@ey.com

  • Pablo Wejcman | pablo.wejcman@ey.com

    Ernst & Young LLP (United States), Latin America Business Center, Chicago

    Alejandra Sanchez | alejandra.sanchez@ey.com

    Ernst & Young LLP (United States), Latin America Business Center, Miami

    Terri Grosselin | terri.grosselin@ey.com

    Ernst & Young, LLP (United States), Latin America Business Center, San Diego

    Ernesto Ocampo | ernesto.ocampo@ey.com

    Ernst & Young LLP (United Kingdom), Latin American Business Center, London

    Lourdes Libreros | lourdes.libreros@uk.ey.com

    Ernst & Young Tax Co., Latin America Tax Desk, Japan & Asia Pacific

    Raul Moreno, Tokyo | raul.moreno@jp.ey.com

  • Luis Coronado, Singapore | luis.coronado@sg.ey.com

    Document ID: 2022-5884

     
     

    The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

     

    Copyright © 2024, Ernst & Young LLP.

     

    All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

     

    Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

     

    "EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

     

    Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

     


    Cookie Settings

    This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


    Yes, I accept         Find out more