Mexico tax adjustments for automakers and gas stations, Digi Mart USA News (Mexico): Mexico’s Chamber of Deputies approved, with 349 votes in favor and 92 against, a reform to the Income Tax Law that would allow automakers and gas stations to be exempt from a special control mechanism over their deductions and tax losses.
The mechanism establishes controls to review the expenses that companies may deduct from their income when calculating taxes, as well as the tax losses they may apply to reduce their tax obligations. The provision targets companies established in Mexico with cumulative income above 50 million pesos.
Carol Antonio Altamirano, chair of the Finance Committee, explained that the exception for the automotive industry is based on the fact that its operations are similar to those of maquiladoras, which already receive special tax treatment. In the case of gas stations, he said lawmakers considered their high operating costs and the limits on passing those increases on to consumers.
