In light of the imminent termination of the effectiveness period established in the Decree (July 19), an extension has been requested so that the Mexican tax authorities grant three additional months, which could allow taxpayers to apply the Decree until October 19, 2017, thus, to complete the return of capital until then and still have access to the reduced 8% income tax rate and other benefits.
This request was submitted yesterday (July 13) to the Ministry of Finance and Public Credit (SHCP) and the Tax Administration Service (SAT) by key banking/insurance groups within the Mexican financial sector: Banks of Mexico Association (Asociación de Bancos de México); Mexican Association of Stock Market Institutions (Asociación Mexicana de Instituciones Bursátiles); and the Mexican Association of Insurance Institutions (Asociación Mexicana de Instituciones de Seguros).
Naturally, the expectation from said request is a greater amount of repatriated funds, an increase of productive investment and employment generation in Mexico.
Regardless of the foregoing, to those taxpayers in the midst of applying the Decree, we recommend to continue in the process by taking into account the July 19 deadline.
We will keep you posted of any development in connection with said petition and reaction of the competent authorities.