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:
By 2016, it increased to 5 taxpayer’s minimum wages, whichever is less.
This year, amount increases to 175,000 Mexican Pesos, whether the car was purchased by cash or on credit.
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.
This was given for every 5 years and now it’s reduced to every 3 years.
All medical expenses will be deductible by 10 %
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.
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.
Legal persons can deduct their cash expenses up to 5,000 Mexican pesos.
Applies to individuals with business activity, corporations and for all real estate in the country.
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