Tax benefits for your business on 2016

Tax benefits for your business on 2016

Do you know the changes in the 2016 Mexico’s Tax Reform?

These are some benefits for individuals and corporations, particularly in the amount of deductions on your annual statement.

Regarding small and medium enterprises (SMEs) and entrepreneurs, they will have additional benefits in deduction of workers participation in corporate profits (PTU), cash expenses and exemption from Income Tax (ISR) for SMEs in the primary sector.

The following concepts will benefit from these changes:

1. Limited personal allowances
By 2016, it increased to 5 taxpayer’s minimum wages, whichever is less.

2. Purchasing new cars
This year, amount increases to 175,000 Mexican Pesos, whether the car was purchased by cash or on credit.

3. Voluntary contributions for retirement
The amount people can contribute to their AFORE increased from 10 % of annual income or 4 minimum wages in 2015 to 15% of income to 5 minimum wages this year.

4. Exemption from Dwelling sale
This was given for every 5 years and now it’s reduced to every 3 years.

5. Medical Disability Expenses
All medical expenses will be deductible by 10 %

6. Employees’ participation in corporate profits
This is a benefit for natural persons with business activity. Years ago, PTU could deduct only the previous year. From 2016, the PTU may be deducted on the same year.

7. Specific activities
Individuals engaged in primary activities such as agriculture and stockbreeding, are exempt from income tax up to an annual amount, provided that their income does not exceed 8 minimum wages per year.

8. Cash expenses
Legal persons can deduct their cash expenses up to 5,000 Mexican pesos.

9. Immediate deduction of investments in fixed assets
Applies to individuals with business activity, corporations and for all real estate in the country.

Tax consultancy practices of MVP Business Strategy, aims for optimization of your taxes and detention of new tax benefits applicable to your company. Do you want some advising? Feel free to visit our contact section or follow us on any of our social networks.



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