Main fiscal changes for 2020
Main fiscal changes for 2020. As part of the proposal in the economic package for 2020, the Ministry of Finance and Public Credit presented its amendments initiative in fiscal provisions, to avoid tax evasion and avoidance, so that each taxpayer takes part with its corresponding tax burden.
Therefore, we will state the 10 points that the taxpayer must take into account for the next 2020
1.- Relief in the tax scheme is intended to be implemented in the “Sixth Title of the Disclosure of Reportable Schemes” in the Federal Tax Code; Title that aims to force the advisors to report to the Tax Administration Service what the strategies consist of and tax advice that generates benefits for its clients.
2.- Fiscal bonuses, the same rules will be kept for the fiscal bonuses of the “LIF” 2019, such bonuses cannot be accredited until 2020 annual return.
3.- Elimination of universal compensation in the Federation’s Fiscal Code (CFF by its acronym in Spanish) and the Value Added Tax Law (LIVA by its acronym in Spanish), it is intended to amend Articles 23 of CFF with the current text of Article 25 Section VI of the LIF 2019, in addition, Articles 6 of the VAT Law will be reformed which in 2019 still kept the text to compensate the tax under the CFF, by 2020 with these measures the universal compensation is eliminated in the CFF and the LIVA.
4.- Digital Platforms, with the amend of Articles 2,3,4 and 5 of the Income Tax (ISR by its acronym in Spanish) law, it is intended that platforms such as Uber, Cabify and Didi, as well as those that offer hosting services, are subject to taxation in Mexico , what is intended is that they pay ISR and shift VAT on their receipts.
5.- Primary Sector Regime (AGAPES), Article 74-B of the ISR Law is created to allow in this regime of the primary sector to industrialize and commercialize agricultural products so that they intend to generate opportunities for many marketers to obtain some of the benefits that only producers enjoyed before.
6.- Sales through third parties by catalog, Articles 76-B of the ISR law is created so that legal entities that use the catalog sales scheme withhold the ISR for commissions paid to their sellers, likewise, the people who sell by catalog must register in the Federal Taxpayer Registry.
7.-Proof of withholdings, Articles 106 of the ISR Law that tells us about the legal entities that are required to make withholdings, will be released from issuing proof of withholdings, it will be enough to have the digital tax receipt online with the withholdings recorded.
8.-RIF for service on digital platforms, Section VI is created in Articles 111 of the ISR Law to add to the Regime of Fiscal Incorporation, individuals who provide the service or alienation of goods online, through digital platforms, the limit imposed will be only and exclusively when incomes are obtained through these platforms.
9.-Real estate leasing, Articles 118 of the ISR law is amended and a paragraph is added, which tells us that when a lessor wins a dispute for overdue rent payments, it is intended that the judicial authority inform the SAT (Tax Administration Service in English), with the purpose to require from the lessor the tax receipts.
10.-Outsourcing taxation, the shift of VAT in outsourcing services, individuals and legal entities must withhold the VAT shifted by the outsourcing companies they hire.
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