Mexico: Amendments to Income Tax law

On December 4th, legislative changes to the income tax law have been published in the official Gazette (la Cuarta Resolución de Modificaciones a la Resolución Miscelánea Fiscal para 2018 y sus anexos 1, 1-A, 3, 7, 11 y 23). The changes relate to the income tax, the VAT and additional topics. Specific aspects that are addressed include:

  • Trusts and fiduciary accounts
  • Procedures for investment funds to determine income tax on returns from investments in derivative financial operations
  • Trust assets used to buy or construct real estate
  • Disposals of intangible assets made with respect to individuals residing abroad
  • Expenses incurred with respect to commercial activities under a contract with a union
  • The cost of goods sold for taxpayers conducting commercial activities that involve the acquisition and transfer of goods
  • Modifications to the arm’s length value determination of transactions with related parties within the interquartile range