Mexico Chamber of Deputies approves changes to income tax law, Digi Mart USA News (Mexico): Mexico’s Chamber of Deputies approved new amendments to the Income Tax Law (ISR) aimed at strengthening tax oversight in Mexico. The measure was approved by the full chamber with 349 votes in favor and 92 against.
Following the vote, the bill was sent directly to the Executive Branch for signature, promulgation and official publication in the Diario Oficial de la Federación (DOF). The main change directly affects automakers that assemble and manufacture vehicles in the country under the fiscal deposit scheme.
The new rules clarify how these companies must pay taxes, which authorities say is intended to give them greater legal certainty in their daily operations. Officials cite two main goals: encouraging new private investment and protecting the thousands of formal jobs generated by the automotive sector in Mexico.
The original proposal was significantly adjusted before final approval. The Senate of the Republic revised the initial text to include specific protections that exempt the automotive and fuel industries from severe limits on loss deductions.
Opposition lawmakers questioned why these changes were not included from the first debate in the lower chamber. However, the final version kept the exemptions in place to avoid a negative impact on competitiveness and on operations in the energy and manufacturing sectors.
