2024 fiscal year budget proposal

The aforementioned economic package contains no tax reform initiatives for 2024, in keeping with the general economic policy criteria of not increasing or creating new taxes.

The main fiscal aspects considered in the LIF include:

Studies on tax evasion in Mexico

There is a proposal to establish an obligation for the Ministry of Finance and Public Credit, through the Tax Administration Service, to publish studies on tax evasion in Mexico. These studies must involve prestigious national and foreign academic institutions, research centres, and national and international organizations or institutions dedicated to research or specialized in the field.

Surcharge Rate

There is a proposal for the fiscal year of 2024 to make the surcharges rate 0.98% per month on unpaid balances, in the case of extensions for the payment of tax credits. This is the same rate used in the fiscal year 2023.

Regarding the surcharge rates for the payment of omitted contributions and their accessories in instalments, it ratifies the same rates for 2024 that were applied in 2023, which are the following:

• 1.26% per month in instalments of up to 12 months
• 1.53% per month for instalments over 12 months
• 1.82% for instalments over 24 months

Withholding of income tax on bank interest

The proposal also includes an increase in the withholding rate of the income tax for bank interest. For 2024 the established rate would be 1.48%, which is higher than the 2023 rate, which is 0.15%.

Tax incentives

The fiscal incentives established in 2023 are maintained, they will continue in force for 2024:

• IEPs stimulus for the acquisition and import of diesel, biodiesel and their mixtures.
• Stimulus for payment of tolls.
• IEPs stimulus for the acquisition of fossil fuels for use in the production process.
• Stimulus on the Special Fee for Mining.
• Fiscal stimulus to natural and legal persons residing in Mexico who sell of books, newspapers and magazines.

Reduction of fines

As in fiscal year 2023, the proposal maintains the benefit in 2024 of reduction of fines by 40% and 50% for infractions derived from the breach of federal tax obligations other than payment obligations, for obligations related to the Federal Taxpayer Registry, the submission of tax returns, requests or notices and the obligation to keep accounts, as well as for failing to make provisional payments related to a contribution.

Modifications to General Import and Export Tax rates

As in previous years, tariff and benefit regulations were considered as part of the LIF, including:

• The 2024 economic package again includes a staggered tariff reduction of 15% for the steel sector and 20% for the textile sector
• Temporary tariffs of 5% to 25% are considered in sensitive sectors, such as footwear, textiles, certain fractions related to steel, aluminium and electrical material, to mention a few
• It maintains the benefits of the Sector Promotion Programs, mainly for the steel industry. The above, in order to strengthen the tariff policy in 2024

The Mazars tax team will continue to follow up on any possible modifications to the provisions indicated in the economic package for 2024 and report any relevant changes that may have an impact on the various tax regulations.