Mexico's Bill Proposal to Tax Donations and Inheritances


On September 6, 2016, a bill for amending certain provisions of the Mexican Income Tax Law was introduced by congressman Jorge Álvarez Máynez of the Movimiento Ciudadano party.

The bill aims to tax inheritances and donations based on the amount of income received. For such, it proposes levying individual taxpayers with a progressive rate as follows:

I. Gross income below $10 million pesos would be exempt.
II. Gross income between a $10 and up to $50 million threshold, would be levied with a 10% tax.
III. Gross income ranged between $50 and $100 million pesos, would be levied with a 20% tax applied over amounts exceeding the 50 million threshold (item II above).
IV. Gross income exceeding $100 million pesos would be levied with a 30% tax applied over amounts exceeding the referred thresholds (items II and III above).

The bill also proposes a tax exemption to individuals with disabilities.
This tax would be additional to the local transfer taxes (i.e. estate tax for the acquisition of real estate).
The Mexican Congress is discussing and voting this bill within the next months as part of any potential amendments to the tax laws that could be introduced for 2017.
The lawyers of the tax and wealth planning practice group of our Firm will be pleased to answer any question you may have on the proposed program and its eventual approval.


Gerardo Nieto
Gil Zenteno
Alejandro Barrera
Victor Barajas
Mario Barrera

Mexico City, October 3rd 2016.