Mexico Income Tax Law amendments and automotive industry, Digi Mart USA News (Mexico): The Chamber of Deputies approved new amendments to the Income Tax Law (ISR) aimed at strengthening tax control in Mexico. The reform seeks to increase tax collection and close the path to schemes that evade or reduce tax obligations among large companies.
The measure was approved in the plenary session by 349 votes in favor and 92 against. Following the vote, the bill passed directly to the Executive Branch for signature, promulgation and official publication in the Diario Oficial de la Federación (DOF).
The main change directly affects automotive companies that assemble and manufacture vehicles in the country under the bonded warehouse scheme. The new rules specify how these companies must pay taxes, providing greater legal certainty for their day-to-day operations.
Authorities cite two key objectives for the measure: encouraging new private investment and protecting the thousands of formal jobs generated by the automotive sector in Mexico.
The original proposal underwent significant adjustments before final approval. The Senate of the Republic revised the initial text to include specific protections and to exempt the automotive and fuel industries from severe limits on the deduction of losses.
Opposition deputies questioned why these changes were not included from the first debate in the lower chamber. However, the final version保证 that the exemptions would remain in place to avoid a negative impact on competitiveness and on operations in the energy and manufacturing sectors.
