Mexico prepares tax deal with technology platforms

Mexico’s Finance Ministry plans to announce the roll-out of a landmark tax deal with technology platforms in the coming weeks, a top official said on Monday May 13.

Deputy Finance Minister Arturo Herrera confirmed the plans in an interview at Bloomberg News offices in Mexico City, while declining to elaborate. Bloomberg reported in November that the previous administration reached an agreement with Uber Technologies Inc. in which the platform will withhold taxes from partners who gain income from both its ride-hailing and food delivery services.

The country has been looking for ways to boost tax collection that’s the worst among members of the Organization for Economic Cooperation and Development. The previous administration was also in talks with Netflix Inc. to collect sales taxes from users. Airbnb Inc. had stepped away from talks that would have required the home-sharing website to collect income tax from its hosts.

The program wouldn’t create a new tax but would collect what drivers should already be reporting and paying monthly. More than half of Mexico’s population works in the informal economy and doesn’t pay income taxes.

Read the full article at Bloomberg.com.



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