For the Tax Reform of the 2021 fiscal year, the Executive presented on September 8, 2020, to the Congress of the Union, the respective Economic Package, which includes proposals for the fiscal Miscellaneous regarding the Income Tax Law (LISR ), Law of Value Added Tax (LIVA), Law of Special Tax on Production and Services (IEPS) and the Fiscal Code of the Federation (CFF).
The economic package is formulated in response to a national and international economic environment of uncertainty, where global economies are faced with the health crisis of the coronavirus, resulting in the worst recession since 1932.
Within the Mexican republic, the national economy is in its worst decline in the last 100 years, where the recovery is forecast to be slow. The fall in GDP will be 8% in 2020, and with a recovery of 4.6% in 2021.
In response to the implications of the economic crisis, the 2021 economic package proposes to attack the public debt; health, education, pension, energy, security, investment spending and federal spending; budget revenue, and energy.
The Economic Package proposal does not include new taxes, but it does include adjustments in the applicable regulations related to compliance with obligations and requirements, increasing control, based on premises on administrative simplification, legal security, modernization, tax management, collection efficiency, combat corruption and impunity and tax evasion and avoidance.
Once the project is analyzed by the Chambers of Congress, it must be approved no later than October 31, 2020, to begin its validity in 2021.