Congress approves the Economic Package for 2021

On November 5, the Plenary of the Chamber of Deputies approved the changes made by the Senate to the economic package for 2021 (“Economic Package”), which had been sent to that reviewing chamber on October 19.

The Economic Package contemplates (i) the report of the draft decree reforming provisions of the Income Tax Law, the Value Added Tax Law and the Federal Tax Code; (ii) the report of the draft decree issuing the Federal Revenues Law for Fiscal Year 2021; and (iii) the report of the draft decree reforming provisions of the Federal Fees Law.

In general, the Economic Package was approved by the Chamber of Deputies in the terms proposed by the Executive initially, which we commented on in the note published on October 22 and which can be consulted here.

However, below we mention certain changes made by the Senate that we consider relevant.

In this regard, the reform bill proposed by the Federal Executive that authorized the tax authorities to use technological tools during on-site inspections (such as cameras, video recorders, cell phones, among others) that would allow them to collect information of the facts detected in exercising their inspection powers was eliminated.

In addition, the Income Tax withholding rates applicable to income obtained by individuals who provide services or sell goods by internet through electronic platforms, computer applications and similar means were modified in order to establish single rates for each type of activity carried out by taxpayers, instead of the progressive rates currently in force.

The Chamber of Deputies sent the Economic Package to the Federal Executive for constitutional purposes which, once published in the Official Federal Gazette will enter into force, in general, as of January 1, 2021.

To obtain additional information, contact our experts:

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

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

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