Tax simplification measures announced

President Calderón and Finance Secretary Ernesto Cordero announced administrative measures that are designed to reduce the burden of complying with Mexico’s tax laws. The steps include: eliminating the monthly declaration of the Single Rate Corporate Tax (IETU) in favor of a single annual declaration; eliminating the annual declaration of Value Added Tax, since the tax payments and declarations are already made monthly; eliminating the requirement for audited financial statements for filings made with Hacienda and the Social Security Institute; enabling taxpayers with credit balances from the Tax on Cash Deposits (IDE) to get refunds without having to present audited financial statements; and extending the validity of electronic signatures for four years from the current two.  The President said that these measures and other steps (already implemented and to be implemented) to allow for electronic filing of forms would save companies Ps. 15 billion per year and reduce by 40% the time needed to meet tax obligations, therby putting Mexico at the median of OECD countries. (Hacienda 6/30)

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