Mexico Country Report
Business OpportunitiesNovember 3, 2021
This article is a contribution to the International Accounting Bulletin (IAB) Mexico survey by PrimeGlobal Executive Director Latin America, Estefania Pantoja Lahoz, and it was published in IAB's October 2021 newsletter. Please read the full article below and reach out to Estefania regarding any questions in relation to the article and doing business in Mexico.
What effect have the changes to taxing the digital economy had during lockdown? As more business and services became digitised, were the changes considered onerous?
The digital economy has experienced significant transformations, given the changing consumer patterns during the pandemic. Taxing digital services platforms has been having negative consequences, as the current taxation systems were designed for a different context and system. Adjustments are likely to take some time.
Has the SME sector caught up with best accounting practice and corporate governance?
The sector has been keeping up to date with all the changes. The PrimeGlobal Mexican Tax Committee, led by Mexican member firm experts, meets regularly to share the latest changes and insights.
There were complaints last year that the constant modifications to tax laws were leaving the accounting profession constantly updating. Has the rate of tax reform slowed and, if so, has this brought relief?
Modifications to tax laws in Mexico are constant and this will continue to be an issue. During the pandemic, our firms and the wider accounting profession in Mexico were able to offer additional services to clients and add value by helping clients understand the implications of tax law changes from an advisory point of view.
A lot of the firms decreased fees last year due to the economic pressure created by the pandemic. Has the accounting industry started to recover this year? Are there still challenges around cash flow and fee collection?
What are your expectations for the next 12 months - are there any potentially significant developments in the pipeline?
The Mexican experts continue analysing and identifying different opportunities given the latest changes - helping them to continue growing. I believe this will help other countries in Latin America learn from this experience and overcome similar challenges with tested solutions. PrimeGlobal firms across Latin America continue working together to share these experiences, services and knowledge across the whole region.