SAT is evaluating the possibility of declaring the Unites States a “Tax Heaven”.


SAT is evaluating the possibility of declaring the Unites States a “Tax Heaven”.

Due to its recent tax reforms, the Unites States tax rate for income will be 75% less in relation to
the established tax rate in México, therefore the rules for investments will have to be modified.

The income obtained form an operation in Mexico is taxed with a 30% rate, because of the recent
tax reforms in the Unites States, the same operation will be taxed with a 21% rate. The difference
between the countries tax rates is why México is evaluating the possibility to declare U.S. as a
country with a preferable tax regime, that could easily be considered a tax heaven.
However, the head of Mexico’s SAT, Osvaldo Satín, has stated that no formal decisions have been
made regarding this situation. During an interview with the newspaper “El Financiero”, Satín
pointed out that there’s a special procedure that must be followed to classify a country as a tax
heaven “There’s no individual rule for each country, we will have to evaluate the United States
case accordingly, today México has not yet classified the U.S. as a tax heaven” he stated.
The 21% corporate tax rate for income in the U.S. is inferior to the 22.5% rate established in
Mexico’s law in accordance to the 176 th article of the Ley de ISR. This means, as stated by Raul
Silicia, partner at PwC, that in the U.S, taxpayers will only be paying 75% of the 30% tax rate that
Mexico establishes, which means that every payment made to entities under a Refipre
(Preferential Tax Regime) won’t be deductible.
Jorge García, tax partner at EY, has stated that our Refipre (Preferential Tax Regime) norms will
inevitably have to be adjusted to comprehend and face the situation in a proper manner,
nevertheless, at this moment, the tax regime cannot be automatically classified as preferential,
however it may be considered as preferential soon, depending on the activity made.

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