Mexico | Economic Package 2021

Dear Clients and Friends:

On September 8, 2020, the Ministry of Finance and Public Credit, Arturo Herrera, presented to the Chamber of Deputies of the Congress of the Union, the economic package for the fiscal year 2021, which includes the following proposals:

Incomes

I. Initiative for a Decree issuing the Federal Revenue Law for the 2021 Fiscal Year;

II. Initiative with a Draft Decree reforming, adding, and derogating diverse provisions of the Income Tax Law, the Value Added Tax Law, the Special Tax on Production and Services Law, and the Federal Fiscal Code;

III. Initiative with a Draft Decree that amends, adds, and derogates diverse provisions of the Federal Law of Rights;

IV. Report on the use of the power conferred to the Federal Executive in tariff matters, which is submitted pursuant to Article 131 of the Political Constitution of the United Mexican States.

Expenses

I. Draft Decree on the Federation's Expenditure Budget for the 2021 Fiscal Year;

II. Letter from the President, Explanation of Reasons, Volumes, and Annexes of the Proposed Federal Expenditure Budget for Fiscal Year 2021.

It is important to highlight that the proposals will be subject to analysis and discussion by the Chamber of Deputies and, once approved, will be sent to the Chamber of Senators for approval, the deadline for concluding the legislative process is October 31, 2020.

We will keep you informed on the progress of the legislative proposals that comprise the economic package and we invite you to read our publication about the proposal of the 2021 tax reform.