The Chamber of Deputies approved the amendments to the tax provisions for 2021

On October 19 and 20, 2020, the Plenary of the Chamber of Deputies approved (i) the report of the draft decree that reforms, amends and eliminates various provisions of the Income Tax Law, the Value Added Tax Law and the Federal Tax Code; (ii) the report of the draft decree that issues the Federal Revenue Law for Fiscal Year 2021; and (iii) the report of the draft decree that reforms, amends and eliminates various provisions of the Federal Fees Law (“Draft Decrees”).

In general, the reforms of the tax provisions proposed by the Federal Executive were approved as they were presented this past September 8th to the Chamber of Deputies. However, we would like to point out a few changes contemplated in the Draft Decrees.

In this regard, the bill of the Federal Executive to apply complementary quotas to those already established in the Special Tax on Production and Services Law for the alienation and importing of automotive fuels (gasoline, diesel, non-fossil fuels or their mixtures) was eliminated.

In addition, certain precisions were incorporated in the provisions of the Federal Tax Code that regulate the development of on-site inspections regarding the evaluation of documents and other information provided by taxpayers and what should be understood for circumstantiating the facts or omissions that could imply the breach of the tax provisions.

Furthermore, an increase is established of 6.57% in the fees for the exploitation and use of the radioelectric spectrum established in the Federal Fees Law instead of the 56.5% originally stated for the frequency between the ranges of 800 MHz and 850 MHz.

Due to the foregoing, the Draft Decrees were sent to the Senate for their discussion and possible approval over the next few months.

In our publication of September 10, 2020, we discussed the matters that we consider relevant of certain modifications to the tax provisions which may be consulted at this link.

We will continue to monitor the legislative process of the Draft Decrees and of any relevant changes they may suffer. 

For additional information, please contact our experts:

Fernando Moreno, Partner: +52 (55) 5258 1008 |

Jorge Díaz, Associate: +52 (55) 5258 1008 |

Diego Benítez, Associate: +52 (55) 5258 1008 |