Twitter & Google safe from Mexico’s tax to digital economy

Mexico’s Finance Ministry said only those apps related to the services sector, specifically hotels and hosting, will be included in the tax to digital economy companies

Twitter & Google safe from Mexico’s tax to digital economy
Google, Twitter, and Whatsapp will not have to pay taxes with Mexico’s fiscal package 2020 – Photo: Kacper Pempel
English 26/10/2019 10:13 Leonor Flores Mexico City Actualizada 10:21
Guardando favorito...

Leer en español

Google, Twitter, and Whatsapp will not have to pay taxes with Mexico’s fiscal package 2020.

However, digital hosting apps such as Airbnb will have to catch up with tax authorities just like any other hotel.

Deputy Secretary of the Finance Ministry, Gabriel Yorio, explained to Mexican senators that these digital economy companies are not considered in the scheme proposed by the Executive power and that was endorsed by congresspeople.

Have you heard about Mexico's plans to tax Uber and Rappi?

In a reunion of the Joint Committee on Finance and Legislative Studies, he exposed that although there has been a lot of confusion regarding which companies will be affected, only those belonging to services are being included.

Apps related to generating publicity and cloud storage are left out from these measures.

“This means that related companies like Google, Twitter, and Whatsapp do not fit in the services charging regime,” he clarified.

He said that only those of hotel services are included to level the playing field.

Both in hotel and hosting services, VAT  is applied and it generates income, he said.

Which are the challenges faced by FinTech companies in Mexico?

That is why, he said, it is a very delimited initiative that allows preparing the ground for a digital economy tax structure.

He said authorities will hold meetings with the service sector every two months to assess the application of the regulation.

He asserted that those companies that have to comply with the fiscal package will have a year to adapt their systems; the new regulation will come into effect on June 2020.

He thinks it is enough time if compared to what happened in the banking sector with the codes for the payment of revenues and products.

Have you heard about the FinTech companies that want to operate in Mexico?

mp
 

Guardando favorito...

Recomendamos