Wage Earners Are Left Out of the Simplified Trust Regime
Tax Partner Mario Barrera was cited in an article published by El Heraldo de México about the Simplified Trust Regime, which aims to benefit individuals with low-income business activity. Mr. Barrera explained why the system is inequitable.
"A wage earner can have rates up to 35 percent, while in this regime you can earn up to 3.5 million pesos and only pay 2.5 percent. Very reduced rates are offered with the intention that informal entities formalize, but this has not yielded many results and is in essence an inequitable system," he commented.