Our partner Santiago Llano and associate Ana Gabriela Ríos analyze how Donald Trump’s proposed tax reform, which includes reducing the US corporate tax rate to 15%, could impact Mexican investors. While this measure aims to stimulate economic growth and attract foreign investment, it also raises significant tax implications under Mexican law.
A lower US corporate tax rate could make investments in US entities more attractive due to increased profitability. However, this change may trigger Mexico’s controlled foreign corporation (CFC) rules (REFIPRE), potentially limiting tax deferrals and increasing tax burdens for Mexican investors. Additionally, compliance with complex reporting obligations will be essential to avoid penalties, fines, or even legal consequences.
To navigate these potential changes, investors should:
- Review their US investment portfolios and assess tax implications.
- Verify whether their investments fall under Mexico’s CFC regime.
- Ensure compliance with reporting obligations to mitigate risks.
- Stay informed about the reform’s developments and potential enactment.
"Understanding the interplay between US and Mexican tax regimes is crucial for investors seeking to mitigate risks and optimize their strategies in an evolving fiscal landscape."
We invite you to read the full article to learn more about this topic.
If you have any questions, please contact our Tax experts (see details below).
