On October 20, the plenary session of the Chamber of Deputies approved the draft decree amending, adding and repealing several provisions of the Income Tax Law, the Value Added Tax Law, the Law of the Special Tax on Production and Services, the Federal Law of the Tax on New Automobiles, the Federal Tax Code and other laws (the “Decree“).

The approved opinion is practically identical to the initiative presented by the President (a summary of said initiative can be consulted at the following link https://rapa.mx/2021/09/08/proyecto-de-reforma-fiscal-para-2022/) highlighting the following changes made by the Deputies to the Federal Fiscal Code:

Federal Fiscal Code

• Federal Taxpayers Registry.

It is specified that the obligation for people who turn 18 years old to register in the Federal Taxpayers’ Registry will not generate tax charges and, in case of omission, no penalties may be imposed; therefore, apparently, more than an obligation, it will be a suggestion.

• Financial Statement Audit.

In relation to the financial statement report, the amount of income required for it to be mandatory was modified from $876,171,996.50 to $1,650,490,600.00 pesos (updateable in each fiscal year); maintaining the option for those taxpayers who are not required to report their financial statements.

The Legislative Opinion will now be sent to the Senate for discussion and approval and may return to the Chamber of Deputies in case of any modification. 

In terms of the Federal Constitution, this Opinion and the others related to the Budget of Revenues and Expenditures must be approved no later than November 15.    

* * *

We will inform you of the progress of the corresponding legislative process in due course.