Update: Mexico’s legislative response to COVID-19
The Mexican government has implemented legislative changes, grants, incentives, and extensions to ease the strain on the business.
President Andrés Manuel López Obrador has pledged a 25,000 pesos ($1,000) credit for business owners, but that has yet to come to fruition.
The government has temporarily adjusted the accounting rules for banks and other financial institutions to facilitate formal deferment of debt-service payments.
Tax Return Extensions
The federal district of Mexico City (CDMX), Baja California, Colima, Durango, Jalisco, Hidalgo, Morelos, Puebla, Sonora, Quintana Roos, and Zacatecase has extended certain tax return deadlines until April 30, 2020.
Proposed VAT & Excise Tax Deferment
The Senate has proposed the deferment of March, April, and May 2020 value-added tax and excise tax payments. Payment would be divided into three equal, interest-free installments for July, August, and September 2020. Payments would be adjusted for inflation.
Proposed 100% Fixed Asset Depreciation
Some new investments in fixed assets acquired between March and May 2020 could qualify for a 100% depreciation deduction with senate approval.
Proposed Withholding Tax Deferment
Withholding tax on wages and salaries for March, April, and May 2020 may be deferred until later dates, should the senate approve the proposal. Payment would be divided into three equal interest-free installments for July, August, and September 2020. Payments would be adjusted for inflation.
While this information is correct at the date of publishing, we recommend you contact us for assistance. Our in-country-experts are tapped into the regulatory and governmental pipeline. Let us help you overcome your business challenges during these unstable times.