IRS Studies New Mexican Corporate Tax
A single-rate business tax set to come into force next year in Mexico has come
under review by both the US Internal Revenue Service and the Treasury
Department. The departments are seeking to ascertain whether the 'impuesto empresarial
a tasa unica' (or IETU) will qualify for a tax credit under the tax treaty currently
in place between the United States and Mexico. The IRS has, according to a WebCPA report, stated that it will not - when the
tax initially comes into force in January 2008 - challenge taxpayer assertions
that the new business tax is eligible for a credit under the US-Mexico Income
Tax Treaty. Any changes in the treatment of the IETU for the purposes of tax credits will
only apply following the issuing of further guidance on the matter, WebCPA quoted
the US tax department as explaining. .
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