Last August 8 of this year, a bill of law was proposed before the Legislature Assembly of the House of Representatives, an initiative with a project for executive order, aimed at taxing donations, inheritances and legacies with Income Tax (“ISR”), received by individuals.
Income lower than 10 million pesos, would be exempt from Income Tax (“ISR”).
It is proposed to establish a provisional payment within the next 15 days following receipt of the income at a progressive rate based on the “value” of the income as follows:
1.- Income between 10 and up to 50 million, would be taxed at 10%.
2.- Income between 50 and up to 100 million, would be taxed at 20% on the excess over 50 million.
3.- Income over 100 million pesos, would be taxed at 30% over the excess of the afore indicated upper limits (foregoing items II and III).
The afore indicated rates are only to calculate the provisional income tax payment, so that, not being a definitive tax, any amount over 10 million pesos might quickly get to the 35% and not to the 10%, 20% and 30% indicated in the justification of the proposed bill.
Residents abroad for tax purposes, should keep in mind that they might be subject to Income Tax (ISR) in Mexico, in case of getting title for free, of real estate property located in Mexico, or of Mexican corporations or their shares.
The bill refers that only 0.22% of the population of Mexico would pay this tax, exempting people with disabilities in terms of the General Law to Include Disabled Persons.
The tax would be in addition to the local taxes for property acquisition (i.e., taxes for acquisition of real-estate) that taxpayers must pay.
If the Union Congress passes this Bill into Law, it will be effective on the next day following its publication in the Federal Official Gazette.
In “QuAdrans law and finance” all lawyers and public accountants are at your service to help you with any questions or comments in this regard.
Likewise, we invite you to review your patrimonial structures and matters to consider the eventual incorporation of a tax burdening in general, estates, legacies and donations in our country, if surpassing the indicated limits.
We will be paying close attention to this bill and will keep you posted.
Legal and Accounting Consulting in Playa del Carmen.
