It’s That Time of Year Again: Mexico’s 2022 Tax Reform

The latest round of Mexican tax reform provisions has emerged. Approved by the Mexican Congress on October 26, 2021, the tax reform package includes no new taxes or tax rate increases. Still, the legislation contains several provisions that could spell an effective tax rate increase for U.S. multinationals with Mexican operations. With a January 1, 2022, effective date, cross-border investors may need to take action by year-end to minimize new year surprises.

Armando Lara, who leads KPMG Mexico’s international tax practice, Jose Manuel Padilla, an international tax partner with KPMG Mexico, and Juan David Mina, an M&A partner with KPMG Mexico, join podcast hosts Kim Majure and Kortney Wallace to discuss the new restrictions for intercompany financing, termination of the maquiladora APA program, and VAT rule changes. 

^{Note, this episode was recorded prior to adoption of the tax reform proposals but accurately reflects the final legislation.}

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