On September 6 of 2016, Congressman Jorge Alvarez Maynez, of the Movimiento Ciudadano Party, sent a bill to the House of Representatives related to inheritances and donations received by individuals in order to, starting in 2017, repeal section XXII of article 93 (exemption to inheritances), amend section XXIII of said article (donations), as also articles 130 and 132, and create a new article 132 bis of the Income Tax Law.
The bill proposes to establish a tax on income derived from said sources and that exceed 10 million pesos.
To that end, three proportional rates shall be levied on the total amount of income in excess, and the payment shall be deemed to be a provisional payment:
- The tax shall be calculated applying a base rate of 10% only on the amount exceeding $10,000,001.00 up to $50,000,000.99
- An extra rate of 20% shall be applied exclusively on the amount that exceeds the top amount mentioned above, when the income exceeds $50,000,001.00 up to $100,000.000.99
- And an additional rate of 30% exclusively on the amount that exceeds the $100,000,001.00 amount mentioned above.
We consider it important to keep this bill in mind, because, if passed, beginning in 2017, it would greatly impact Income tax payments, both in the provisional payment stages, as in the annual income tax statement of private individuals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.