Dear Clients and Friends:
On September 8, 2022, the Federal Executive Branch through the Ministry of Finance and Public Credit presented to the Mexican Congress the Economic Package for 2023, which includes the following initiatives and proposed changes and amendments:
- General Economic Policy Criteria for the Initiative of the Federal Revenue Law and the Proposed Federal Expenditure Budget for 2023.
- Initiative of the Federal Revenue Law for 2023.
- Initiative to reform the Federal Law on Duties.
- Initiative to reform the Federal Law on Budget and Treasury Responsibility.
- Draft Decree of the Federal Expenditure Budget for 2023.
- Letter from the President, Explanatory Memorandum, Volumes and Annexes of the Draft Decree of the Federal Expenditure Budget for 2023.
The Initiative of the Federal Revenue Law for 2023 proposes an increase in the withholding tax rate that shall be made by Mexican financial institutions paying interest pursuant to articles 54 and 135 of the Income Tax Law. The new withholding tax rate will be of 0.15% over the capital, representing a percentage increase of 87.50% with respect to the 0.08% rate applicable in 2022.
It is worth mentioning that no amendments were proposed to the Federal Tax Code, the Income Tax Law, the Value Added Tax Law and the Excise Tax Law.
We will keep you informed of any changes and/or amendments that may be proposed during the legislative process of the Economic Package for 2023.