Our partner Juan José Paullada and associate Gabriel Márquez, explore in this article how in Mexico the fiscal landscape for foreign entities operating within its borders can be particularly challenging from a compliance perspective, especially when such entities conduct activities that may create a permanent establishment (PE) in the country. An assessment of this nature may trigger adverse consequences not only for the foreign entity but, particularly, for the Mexican corporation that retains the services. Our experts discuss such risks and provide insights into how to prevent or mitigate them.
"In general terms, a foreign entity is deemed to have a PE in Mexico if it maintains a fixed place of business in Mexico through which it conducts business activities, or if it conducts such business activities through agents that act on behalf of the foreign entity without an independent character".
We invite you to read the full article to learn more about this topic.
In case you have any questions, please contact our Tax experts (see details below).