South America: Tax

When a foreign executive extends their stay in Mexico to lead operations, negotiate terms, or direct personnel, they may inadvertently create permanent establishment exposure for their company—regardless of how many days they've spent in the country. The real risk isn't crossing the 183-day threshold; it's about where decisions are made, what authority is exercised, and whether the foreign enterprise is effectively conducting business through a fixed place or dependent agent in Mexico.

Cross-border employee assignments create distinct compliance obligations under social security coordination and income taxation frameworks. Understanding how totalisation agreements and double tax treaties operate independently—rather than interchangeably—is essential for managing assignment costs and avoiding regulatory pitfalls.

El Ejecutivo Federal presentó el Paquete Económico 2027 ante el Congreso de la Unión, combinando expectativas moderadas de crecimiento con un objetivo de mayor recaudación tributaria.