Carlos Sierra
Carlos Sierra is an accomplished expert in tax planning, risk reduction, and financial consulting, boasting over 10 years of experience. Specialising in intelligent tax strategies, he helps clients navigate complex tax laws, minimising liabilities ethically and legally. His focus includes risk assessment and mitigation, ensuring accurate and timely tax filings. With a comprehensive skill set in financial consulting, Carlos aids business owners in financial optimisation and growth. He remains dedicated to staying informed about evolving tax regulations and economic trends, equipping clients with the latest insights for sound financial decisions.
Understanding the Mexican Federal Revenue Law 2024 update
November 29, 2023
Overview of the 2024 revenue projections
The Mexican Federal Revenue Law 2024 update by the Mexican Senate is now benefitting from the recently approved Federal Revenue Law for the fiscal year 2024, marking a significant increase in the country’s projected revenues. The total expected revenue for 2024 is 9.066 trillion pesos, a notable 9.36% increase from the previous year’s 8.29 trillion pesos. This section will delve into the specifics of these projections, including the breakdown of various revenue sources such as taxes, social security fees, and other contributions.
Key points of the Mexican Federal Revenue Law 2024 update
The Senate approved the Revenue Law for fiscal year 2024. The total amount of expected revenues for the next fiscal year is detailed as follows:
- Projected revenues for 2024 are 9.066 trillion pesos. For fiscal year 2023, it was 8.29 trillion pesos, an increase of 9.36% by 2024. Federal participatory revenue is projected at 4.585 trillion pesos, compared to 4.44 trillion pesos in 2023.
- Authorized to contract and exercise loans for a net domestic indebtedness of up to 1 trillion 990 billion pesos, and external indebtedness of up to 18 billion dollars.
- Four trillion 942,030.3 million pesos corresponding to Taxes.
- 535,254.7 million pesos to Social Security Fees and Contributions.
- 36.5 million pesos to Improvements Contribution.
- 59 thousand 091.4 million pesos to Duties.
- 8 thousand 641.6 million pesos to Products.
- 193 thousand 877.0 million pesos to Utilizations.
- One trillion 312 thousand 289.4 million pesos from Goods Sales Revenues, Services rendered and Other Revenue.
- 277,774.3 million pesos to Transfers, Allocations, Subsidies and Grants, as well as Pensions and Retirements.
- One trillion 737,050.6 million pesos correspond to Revenues Derived from Financing.
- Monthly surcharge rates are maintained at the same level as for 2023:
- Extension: 0.98%.
- Installments up to 12 months: 1.26%.
- Partial payments from 12 to 24 months: 1.53%
- Partial installments over 24 months and deferred term: 1.82%.
- Monthly surcharge rate will continue to be 1.47% during 2024.
- The income tax withholding rate on interest is increased from 0.15% to .50%.
Debt management and loan provisions
A crucial aspect of the new revenue law is the authorization to contract and exercise loans. The law permits a net domestic indebtedness of up to 1 trillion 990 billion pesos and an external indebtedness of up to 18 billion dollars. This section will discuss the implications of these debt allowances and their role in the overall fiscal strategy of the government.
Taxation changes and surcharge rates
One of the key highlights of the 2024 revenue law is the modification of tax structures and surcharge rates. Notably, the law maintains monthly surcharge rates at the same level as in 2023, with specific rates for extensions, installments, and deferred payments. Additionally, the income tax withholding rate on interest has seen an increase. This section will provide a detailed analysis of these changes and their potential impact on businesses and individuals.
Anticipated impact on the Mexican economy
While the Senate’s approval of the Federal Revenue Law is a crucial step, the final authorization from the Executive Branch remains pending. This section will discuss the potential economic implications of the new fiscal measures, focusing on how they might influence the national economy. It will also emphasize the importance of staying informed about the evolution of these measures and their practical impact.
Preparing for fiscal changes
Although the Senate’s approval represents a significant step forward, waiting for the final authorisation from the Executive Branch will be crucial for the implementation and effectiveness of these fiscal measures. Therefore, it is important to keep informed about their evolution and impact on the national economy.
If you would like more advice on the Mexican Federal Revenue law update, please contact the Kreston BSG team.
