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The Mexican Government published on 23 December a Decree that extends, and in some cases expands to fiscal year 2025, the tax benefits initially granted through a previous Decree. That previous Decree, published on 8 January 2019 (originally ending in FY 2021), related to the withholding tax on interest paid by Mexican residents for publicly traded corporate debt bonds and a reduced tax rate for certain taxpayers on the capital gain obtained from the sale of public shares through an initial public offering (IPO).

The takeaway: Taxpayers will need to wait for the Mexican Tax Authority to issue the rules necessary to properly apply these tax benefits. Nevertheless, the extension of these benefits should encourage investment in domestic corporate bonds and private equity markets (IPOs).