Published On: Thu, Jan 2nd, 2014

New Taxes summary for 2014

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On January 1st of 2014, the new tax measures approved by the Congress came into effect, take note  so you will not be surprised.

Here are the new taxes we will have to pay:

PET FOOD

Increase of 16% in food for cats, dogs and small animals, the tax also applies if you want to buy a pet.

SOFT DRINKS AND SUGAR

An additional one peso will be paid for each liter of these kind of liquids, which includes concentrates, powders, syrups, essences and extracts diluted in flavored drinks containing any added sugars.

CHEWING GUM

Because this product is not considered food, consumers must pay an additional 16% IVA Tax.

HIGH DENSITY CALORIES FOODS

An increase of  8% Special Tax on Production and Services (Impuesto Especial a Productos y Servicios IEPS), for foods containing 275 calories or more per serving (100 grams). These include: candy, chocolate, ice cream, cookies, pasta, beer and soft drinks.

MAGNA AND PREMIUM GASOLINE

From 2014, Magna monthly increase will be of 9 cents, while Premium and Diesel fuel will be 11 cents.

IVA TAX TO BUS SERVICES

 Bus tickets will be increased with an additional 16 %, exempting trains, urban or suburban transport in metropolitan areas.

BORDER AREAS

IVA Tax used to be 11% for border areas, now it was decided to approve a 16 %  IVA Tax for the Mexican-American border cities (such as Tijuana, Mexicali, Nogales, Cd. Juarez, Nuevo Laredo, Matamoros, and the State of Quintana Roo.)

AIRCRAFT FUEL

The jet fuel used in aircrafts will be also taxed, which means that 12.40 pesos more will be paid for each liter. This will result in a plane tickets price increase.

INCREASE IN TAX PAYMENT

Those earning up to half a million pesos a year, will pay a rate of 30% in income tax (ISR ) , the income tax rates of 32% will apply to those who earn 750,000 pesos per year, 34% to those who have an income above a million pesos a year. For those earning more than three million , the tax shall be 35%.

TAX INCREASE IN STOCK EXCHANGE PROFITS

Individuals, who buy shares in the stock market, must pay a 10% rate on the income obtained. The same tax will be applied to profits earned by foreign residents.

FRBT REMOVED AND TAX DEPOSITS

Congress determined the disappearance of the Business Flat Tax ( IETU  ) and tax on cash deposits (IDE ), in order to the corporate income to be taxed only on the ISR .

A LIMITED TAX DEDUCTION

A limit on the tax deduction will be applied , this means that all those individuals who made ​​their annual return , may deduct from now on, an  equivalent to 50 % of its total annual income amount.

Mexico Travel Care

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