By Teresa Rodríguez*
The recent Economic Package presented by the Executive, which includes a reform initiative regarding digital platforms, has generated a lot of interest due to the fiscal implications that could arise if it is approved as proposed.
With five key proposals that could transform the tax landscape of this industry, it is crucial to analyze their relevance and possible consequences.
First, the incorporation of tax withholding obligations for legal entities and foreigners, as well as on deposits in foreign accounts, marks a significant change. This measure seeks to ensure that digital platforms contribute fairly to the treasury, but also raises questions about the administrative burden it will represent for companies, especially those that operate internationally.
The second proposal, which requires platforms to give real-time access to their systems to tax authorities, gives rise to two approaches: initially, this direct access could facilitate inspection, but it also raises serious concerns about the privacy and confidentiality of taxpayer information. The necessary investment in computer systems to comply with this obligation could be onerous, especially for small and medium-sized companies operating in the sector.
Regarding sanctions, the initiative that establishes fines for platforms that allow the advertising of false tax receipts is focused on combating tax fraud. However, such sanctions, which could even include criminal repercussions, could possibly contribute to a climate of uncertainty among digital platform operators.
Furthermore, the obligation to provide information to the tax authorities, even when the corresponding collection has not been made, represents a radical change in the relationship between the platforms and the treasury. This measure could generate an increase in operating costs and complicate commercial dynamics, affecting not only the platforms, but also the users who depend on these services.
The proposal to tax certain activities with the Special Tax on Production and Services (IEPS) also deserves attention. This tax could discourage the use of digital platforms for certain activities and, therefore, have an effect in terms of competitiveness for the sector.
Although the proposals of the Economic Package for digital platforms represent a significant change in the country’s fiscal policy, the business community must be attentive to the progress in the approval process of the initiatives since the decisions made in Congress will have a lasting impact on the way in which digital platforms operate in Mexico, as well as on the way they are controlled.
It is essential to remember that this proposal is still in the review and approval process, so it may undergo changes or updates in the coming days.
About the author:
*Teresa Rodríguez is an Indirect Tax Partner, EY México.
The opinions expressed are solely the responsibility of their authors and are completely independent of the position and editorial line of Forbes Mexico.
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