US webcast: Mexico's outsourcing services reform significantly impacts multinationals
Mexico published legislation on April 23 that will significantly impact multinational entities with operations or investments in Mexico. This legislation reforms labor laws related to the legal permissibility and tax treatment of outsourced services from related or third-party service providers. Under the reform, and with certain exceptions, outsourced services are generally prohibited, and payments for outsourcing are neither deductible for tax purposes nor creditable for VAT purposes. Failure to comply with the outsourcing limitations could result in significant penalties or charges of tax fraud. Entities have very limited time to comply, and some may need to undertake significant restructuring to avoid severe consequences.
Date: Thursday 27 May 2021
Time: 7pm (2pm ET)