Mexico’s Transfer Pricing Developments: Addition by Subtraction?

Episode 05-2022 | Mexico has tightened the reins on inbound investment over the past few years. With the termination of the maquiladora advance pricing agreement (APA) program, U.S. multinationals are faced with the possibility that Mexican manufacturing is about to get very much more expensive. The responses have been mixed, with some taxpayers staying the course on their maquilas and some considering a change in location or paradigm. With a lot of factors to be weighed, the calculus isn’t easy. In addition, Mexico’s 2021 tax reform included several transfer pricing rules that stepped up the scope and timing of transfer pricing compliance in Mexico.
 

How are taxpayers dealing with these changes, and what will Mexico do next? Alejandro Cervantes and Carlos Perez Gomez from KPMG in Mexico join podcast hosts Kimberly Majure and Kortney Wallace to discuss.