Treasury estimates that 100 companies in Mexico will pay the global corporate tax

The Ministry of Finance plans to include global corporate tax in next year's economic package and anticipated that up to 100 companies will be taxed with this tax.

Treasury estimates that 100 companies in Mexico will pay the global corporate tax
Photo by Jon Tyson / Unsplash

Mexico contemplates including in its 2022 budget the minimum global tax rate of 15% for large companies after an agreement between the G7 was reached over the weekend. "We see the initiative well because it makes it easier to reach a global agreement," Gabriel Yorio, undersecretary of finance, said in an interview Monday night. "It also avoids competition to lower (tax) rates," he added.

Finance ministers from the United States, United Kingdom, and other industrialized countries reached a historic pact over the weekend to apply a tax framework to multinational companies such as Google, Apple, and Amazon. G20 countries, including Mexico, will discuss next month in Venice the G7 agreement, which was also proposed as a measure to reduce incentives to countries considered tax-havens.

Gabriel Yorio detailed that there is a universe of around 100 companies that could be taxed with the corporate tax and that, possibly, if the operative framework can be established, it will be included in the 2022 national budget, which must be submitted to Congress in the coming months. "We will evaluate if we can have a definition of how this tax will work operationally before (...) and if we have time we would be including it in the 2022 economic package," he explained.

The G7 agreement on a minimum corporate tax of at least 15% globally lays the groundwork for the next step, which is a June 30-July 1 online meeting of the 139 countries negotiating future cross-border taxation rules at the Organisation for Economic Co-operation and Development (OECD) in Paris. The goal of the countries is to reach a consensus on the details at the meeting, as much technical work has been done. Any agreement reached at that meeting will be presented to the G20 finance ministers for approval during a meeting in Venice on July 9-10.