Welcome to the high-level summary of Covid-19 related actions by the Mexican Government. The details and links below have been split between “Tax Filings Affected”, “Government Employee Wages Benefits Programs” and “Government Loan and Support Programs”; and are simply extracts from the more detailed information available on the websites of the Mexican Praxity Participant firms’ websites, links to which are available at the bottom of this page. Praxity Participant Firms in Mexico are J.A. Del Rio, Mazars, and Plante & Moran.
Tax Filing Affected
VAT and Indirect Tax Measures Tax authorities promise to refund VAT as soon as possible, however there is nothing official, regular schedule ascend to 40 working days. Corporate Income Tax Measures Provisional Monthly Payments (PPMs): March installments shall be paid before April 17th , Until April 7 no extension has been granted. Corporate Income Tax Returns: Income tax return for corporations were submitted on March 31st not extension has been granted. Individuals Tax Returns: Payment of income tax and the assessment of submit the return, was extended until June 30th. Other Taxes Payroll Tax Payment Payment deferred during March and April depends on each state, discounts on payment from 5% to 100% these will depend by each state, there are some States that are not granting any deferral or discount. Property Tax
- Payment extension deadline in most states was February or March, extension varies according to the State (April-June).
Lodging and accommodation Tax
- Payment deferred during March and April depends on each state, discounts on payment from 20% to 100% these will depend by each State.
2021 Economic Package The Federal Executive Branch [in Spanish: el Ejecutivo Federal], through the official representative of the Ministry of Finance and Public Credit [in Spanish: la Secretaría de Hacienda y Crédito Público] (SHCP), delivered the 2021 Economic Package to the Congress of the Union [in Spanish: el Congreso de la Unión] for its approval. The said package is comprised of the General Economic Policy Guidelines [in Spanish: Criterios Generales de Política Económica] (CGPE), reform initiatives, the Income Tax Law [in Spanish: la Ley del Impuesto Sobre la Renta], (LISR), the Value-Added Tax Law [in Spanish: la Ley del Impuesto al Valor Agregado], (LIVA), the Special Tax on Production and Services Law [in Spanish: la Ley del Impuesto Especial sobre Producción y Servicios], (LIEPS), the Federal Tax Code [in Spanish: el Código Fiscal de la Federación], (CFF), the Federal Law of Rights [in Spanish: la Ley Federal de Derechos], (LFD), the Federal Income Law [in Spanish: la Ley de Ingresos de la Federación, (LIF), and the Federal Expenditure Budget for the 2021 fiscal year [in Spanish: el Presupuesto de Egresos de la Federación para el ejercicio fiscal 2021].
Government Employee Wages Benefits Programs
Measures Concerning The Protection Of Labor Income
Government ordered to corporations the immediate temporary suspension of all other activities considered as non-essential from March 30th to April 30th , however a list of activities considered as essential were published in other to keeps the Mexican Economy working, some of the activities considered as essential are the following:
- Internal Revenue Services (SAT)
- Oil and Gas
- Water and Energy services
- Food and beverages
- Among others
It is mandatory to Guarantee payment of income for all employees, not meeting this requirement could cause penalties to taxpayers. This guarantee will be granted as long as the Health authority does not decree a heal contingency.
Government Loan and Support Programs
Social Security Deferment On April 14, the Mexican Social Security Institute (IMSS) published a press release offering employers the option of deferring payments of employer social security contributions for the following months for up to 48 months. The option is not new and is established in articles 40-C and 40-D of the Social Security law, however, the guarantee for the deferred balance is no longer required, this basically means that the employer can choose to pay the 20% on next payments instead of 100% and divide the balance into equal payments of 12 and up to 48 months. Employers who choose this option, however, will incur interest (1.26 to 1.82 percent), but may avoid IMSS sanctions and legal action. This option does not require an endorsement, which should facilitate enrollment in this program. However, enrollment in the program requires companies to submit a letter signed by the legal representative requesting enrollment in the program.
House Funding (INFONAVIT) House Funding payments in charge of the employees could be covered by the unemployment insurance only for those employee who lost their jobs from (April to June), an application needs to be filed. Payment of mortgage credit could be deferred for employees from 3 to 6 months with not additional interest, an application needs to be filed. Benefit by 25% by the monthly payment withheld by the employer for the payment of the mortgage credit if the employer goes into technical shutdown See some state level programs below: State of Mexico
- A 50% subsidy on the amount of the Payroll Tax [in Spanish: el Impuesto sobre Erogaciones por Remuneraciones al Trabajo Personal] levied during the month of April 2020, whenever the taxpayer is subject to a payment: - That has 50 contracted employees as of March 31, 2020; and - Where there is no reduction in personnel.
- The ownership payment is extended until March 30, 2020.
Mexico City On the website of the Mexico City Social Development Fund [in Spanish: el Fondo para el Desarrollo Social de la Ciudad de México] (FONDESO), financing was published for small businesses affected by the COVID-19 public health emergency in Mexico City. A one-time payment of $10 thousand pesos 00/100 Local Currency, 0% interest rate, with a 24 month payment term and a 4 month grace period is included in the credit term. Veracruz Fiscal Benefits
- The payments for vehicle renewals have been postponed until June 30, 2020.
- As long as there are no dismissals and there is a maximum personnel of 50 employees, the payment of the corresponding Payroll Tax can be deferred to the bimester of March-April 2020 to cover the tax from July to December 2020.
Economic support for micro, small, and medium-sized companies
- $2 million pesos 00/100 Local Currency to provide loans to micro and small companies.
- $100 million pesos 00/100 Local Currency to provide loans to business owners.
Jalisco The creation of the Jalisco Plan with a grant of one billion pesos will be divided among 3 programs:
- $450 million pesos 00/100 Local Currency for micro and small businesses.
- $400 million pesos 00/100 Local Currency for individuals working in the informal economy.
- $150 million pesos 00/100 M.N. for corn producers.
Links to Our Member Firms
Further Covid-19 advice
The information contained herein on Covid-19 government measures within the G8, consists solely of information that can be found on the websites of one or more Praxity Participant firms, and has not been written, modified or verified by Praxity, it’s staff, officers or directors.