This has significant implications for the entire world, but particularly for Mexico, since the purpose of this minimum tax is to avoid the erosion of the tax base (use of strategies by multinationals to reduce their tax burden), and to try, as far as possible, to equalize or put an even floor on income and income generation in each of the countries, explained Jesús Guillermo Mendieta, spokesperson for the Tax Audit technical commission of the College of Public Accountants of Mexico (CCPM), and partner of the firm. Mendieta and Company.
“It also impacts us because we depend on international tax cooperation for economic development, in our case, of our internal economy,” commented the CCPM specialist.
In the recent context, the OECD and the G7 have pushed a scheme that has just been published called side by side and this aims to address the position of the United States, seeking stability without necessarily dismantling the framework of pillar two, explained Montserrat Colin, President of the International Tax Commission of the Mexican Institute of Public Accountants (IMCP).
“That changes the map of who gets paid.” top up tax (complementary tax)
in certain cases, and forces Mexico to think, from my point of view, technically whether it wants to collect at home or if it wants to stop collecting and export it to other jurisdictions. For Mexico, the main implication is in applying a complementary tax,” explained Colin.
Less tax in the US
Among Trump’s promises is also to reduce the corporate tax rate (ISR, in Mexico) from 21% to 15%, and leaving the OECD agreement is one of the first steps to achieve this.
This would mean a disadvantage in terms of tax competitiveness; “You are practically giving more benefits so that transnational companies leave the US, for a lower rate, right now it is there at 21%, we at 30%. If we look at it in the long and medium term, what you are going to say is, ‘better send your companies to the US and leave a representative office in Mexico,'” commented Mendieta.
However, companies consider different factors that affect their final costs, such as the level of salaries, geographic location and local taxes (state and/or municipal) to decide whether to leave or take their investments to other destinations, specialists agree.
