(a) Minimum tax with respect to corporate income tax.
(b) The 17% rate applies during in 2009 and 17.5% from 2010.
(c) The 40% rate applies where payment is made to a company in a tax haven jurisdiction.
The significant effect of the financial crisis on the Mexican tax market has been in terms of reduced fees clients are able and willing to pay for external advice, which has led to intense competition between tax practitioners to cut costs and win work.The ...
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The significant effect of the financial crisis on the Mexican tax market has been in terms of reduced fees clients are able and willing to pay for external advice, which has led to intense competition between tax practitioners to cut costs and win work.
The swine flu crisis made the situation worse as investors backed away from the country and the local market was hit hard by enforced curfews and other emergency provisions.
The authorities have been noticeably more aggressive according to market commentators, who indicate that the flat tax system has perhaps not been as lucrative as the government was expecting. The tax landscape in Mexico may be altered by VAT proposals that were expected in Congress in September. It is however, an election year so big changes might be put off.
With increasing levels of litigation, it is expected that a system of alternative dispute resolution will be looked at in the near future. It seems there are changes afoot for the litigation tool the amparo, which used by taxpayers to challenge laws constitutionality. "The amparo is almost extinct," said a leading adviser, of the traditional method of challenging government laws. "Many [amparos] have been unsuccessful and there is a bill of amendments to end the massive amparos in Congress now," he added.
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