Mexico's "Anti-Deduction" Rules

Mexico’s 2020 tax reform features several measures implementing pieces of the OECD’s BEPS initiative, including new deduction disallowance, or “anti-deduction,” rules. In concept, these rules are akin to the U.S. base erosion anti-abuse tax (commonly known as the “BEAT”). But as adopted in Mexico, the scope of affected payments, the framework for testing deductibility, and the level of disallowance are all quite different. 

Podcast hosts Kim Majure and Kortney Wallace speak with Armando Lara, head of International Tax Services for KPMG in Mexico, and Jeff Burns, State and Local Tax partner with KPMG in the United States, about the new rules and practical considerations for multinational enterprises with operations in Mexico.

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