Approval of a 15% Tax on Global Companies
Tax Partner Eugenio Grageda was mentioned in an article published by El Heraldo de México about a multilateral agreement to charge global companies a tax of 15 percent of their excess income signed by the Organisation for Economic Co-operation and Development (OECD). The tax is planned to apply to foreign companies that have revenues greater than $21.6 billion and a profit margin greater than 10 percent. Mr. Grageda spoke about the conditions to apply this tax and offered examples of the tax Mexico may apply on residual income from large foreign companies that sell their products in the country.
"If Meta, Amazon, Procter & Gamble, Google, Netflix or Uber have annual sales of more than one million euros in Mexico, and they as a group have revenues of more than 21.6 billion dollars (20 billion euros), with a profit margin greater than 10 percent, these groups must distribute 25 percent of their residual income in the country where their product or service was sold, that is, in this case, Mexico," he said.