Proposed limit on tax deductions: potential impact on benefits, salaries and hiring
A proposal from Mexico’s Ministry of Finance to limit tax deductions beginning in 2027 could temporarily increase corporate income tax for certain companies and affect workforce-related budgets.
A report published by Expansión examines the potential effects of a proposal from Mexico’s Ministry of Finance and Public Credit to limit tax deductions for certain companies beginning in 2027.
Our counsel Eric Palacios contributed to the report by discussing how the proposed mechanism could affect planning for employee benefits, salary increases, hiring and other deductible expenses, depending on each company’s tax and financial position.
The proposal remains under legislative discussion and may change before final approval.
Read the full report in Expansión.
