2011 Income Law for Congress ’ discussion Héctor Silva
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2011 Income Law for Congress’ discussion Héctor Silva WMTA Breakfast Meeting October 20, 2010
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2011 Income Law for Congress ’ discussion Héctor Silva. WMTA Breakfast Meeting October 20, 2010. Economic indicators. 2011 Tax reform bill. No sustantive changes No new taxes No tax rate changes Tax simplification Less tax regulations Reduction of some fees. - PowerPoint PPT Presentation
Transcript of 2011 Income Law for Congress ’ discussion Héctor Silva
2011 Income Law for Congress’ discussion
Héctor Silva
WMTA Breakfast MeetingOctober 20, 2010
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Economic indicators
2011 2010GDP 3.8% 4.5%Inflation 3.0% 5.0%Cetes 28 días 5.0%Oil 63.0 Dls.Deficit budgeted 42.2 Bill
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. 3
2011 Tax reform bill
• No sustantive changes• No new taxes • No tax rate changes• Tax simplification• Less tax regulations• Reduction of some fees
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Estimated gross revenues 2010-2011(billions of Mexican Pesos)
2010 2011Income
LawLast
estimateTotal 2,908.8 2,935.5 3,022.8
Pemex 950.1 974.0 993.3
Not from oil 1,958.7 1,961.4 2,029.5- Taxes 1,373.3 1,362.1 1,461.4- No tax related 125.1 125.1 78.5- Government entities – no
Pemex460.3 474.2 489.6
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Revenues from oil are estimated 4.5% higher than 2010 Income Law.
Mainly from domestic price increases.
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2011 tax bill
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Increase in tax collection of 7.3% is etimated in increases of income tax, Flat tax, IETU tax and VAT
Expected GDP is 3.6%.
Additional tax collection due to 2009 tax changes (tax consolidation and increase of penalties incorporated in the Law in 2007-2009
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2011 tax bill
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Income Law
• Interest rate 0.75%
• Interest rate for late payment of taxes 1.13%
• 4.9% Tax withholding on interests paid to foreign registered banks.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Income Law
As in 2008, the opportunity to update and pay any differences prior to June 30, 2010 is available for employers when paying in one lump sum with no interest nor penalties provided that:
• Differences are paid in one payment• A letter electing for this benefit is filed with the Social Security
Institute.• Specify date of payment• Tax warranty
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
2011 Income Law
Interest and penalties waiver:
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Jan, 1 – Mar, 31
Apr, 1 – May, 31
Jun, 1 – Jun, 30
100%
80%
50%
100%
90%
90%
Paid in 2011 Interests Penalties
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
2011 Income Law
Interest withholding to individuals approved in 2010 to become effective in 2011 is extended to 2012.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
2011 Income Law
Informative annual IETU tax return must be filed by March of each year.
2010 annual return must be filed in January 2011 as stated in the Decree
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
2011 Income Law
IETU tax loss can not be credited against income tax (same as changed last year).
Can only be carried forward against IETU tax in the following ten years.
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