Mexico’s Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) has presented to the Chamber of Deputies (Cámara de Diputados) its Economic Package for 2022 (Paquete Económico para 2022). The proposal aims at increasing compliance with international reporting standards, with particular reference to automatic exchange of information (AEOI).
In this frameworks, it’s been proposed to set up rules dor beneficial ownership reporting for companies, trusts, partnerships and other legal entities, which will have to gather and retain accurate and up-to-date information on BOs and make them available to the Tax Administration Service (Servicio de Administración Tributaria, SAT).
Moreover, the proposal includes certain anti-avoidance rules in relation to tax residence. In particular, individuals will be considered as Mexican tax residents if they can prove a change of residence to another country. In case they prove a change of residence to a jurisdiction with a preferential tax regime they will be classified as tax residents in Mexico for five years unless that jurisdiction has an AEOI agreement or a tax treaty in place with Mexico.
Final approval for the proposals has been scheduled on November 15, 2021, and once the final draft will be signed by the president and published in the official gazette (Diario Oficial de la Federacion) provisions should be enacted from January 1, 2022.