On December 15th, 2018, the Mexican Secretary of Treasury submitted the 2019 economic plan proposal (the “2019 Economic Plan”) before the house of representatives, which has yet to be discussed and approved and is expected to be enacted –with no relevant amendments– no later than December 31st, 2018. The 2019 Economic Plan includes the following documents:
• 2019 Federal Revenue Act project (the “Revenue Act”);
• 2019 Federal Budget project;
• General Economic Policy Guidelines for the proposed Federal Budget and Federal Revenue Act (the “Economic Policy Guidelines”); and
• Report on the modification of import/export tariffs.
In line with López Obrador’s campaign commitments, the 2019 Economic Plan did not introduce any new taxes or increase any current tax rates, in order to provide investors with legal certainty and tax stability at least –as stated in the Economic Policy Guidelines– during the first 3 years of his tenure. The 2019 Economic Plan also eased off the rumors of a possible repatriation tax amnesty or creation of a new inheritance tax, at least momentarily.
While the 2019 Economic Plan does not create or increase taxes, it does include certain measures that are meant to provide the tax authorities with additional cash flow, in detriment of taxpayers. Continue reading...