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LEONELLE MARAIS
Leonelle Marais 26999943
19 Oct 2017, 23:02
26999943
Tax news
Mexico wall: Trump condemned over imports tax proposal (The Guardian)
Foreign Minister Luis Videgaray said 20% tax on Mexican imports would make Mexican imports more expensive for US consumers and they would end up paying for the wall (BBC News).Relations between the US and Mexico appeared to be heading for crisis on Thursday after Enrique Peña Nieto cancelled a meeting with Donald Trump and the White House retaliated by suggesting a new 20% tax on imports from its southern neighbour to finance the construction of a border wall.The proposal came amid a new low in relations between the Trump administration and Mexico, following a bitter election campaign in which Trump referred to Mexicans as “rapists” and insisted that the country would pay for the wall ( The guardian 2017).
Recources:
www.theguardian.com/world/2017/jan/26/trump-calls-for-20-tax-on-mexican-imports-to-pay-for-border-wall
www.bbc.com/news/world-us-canada-38766662
Tax of individuals
Mexico: Taxes on personal income (Worldwide tax summaries)
Resident individuals are subject to Mexican income tax on their worldwide income, regardless of their nationality. Non-residents, including Mexican citizens who can prove residence for tax purposes in a foreign country, are taxed only on their Mexican-source income.
Personal income tax rates
The following tax rates are effective for resident individuals for calendar year 2017:
| Taxable income (MXN) | Basic tax | ||
| Over | Not over | Tax on column 1 (MXN) | Tax on excess (%) |
| 0.01 | 5,952.84 | 0 | 1.92 |
| 5,952.85 | 50,524.92 | 114.24 | 6.40 |
| 50,524.93 | 88,793.04 | 2,966.76 | 10.88 |
| 88,793.05 | 103,218.00 | 7,130.88 | 16.00 |
| 103,218.01 | 123,580.20 | 9,438.60 | 17.92 |
| 123,580.21 | 249,243.48 | 13,087.44 | 21.36 |
| 249,243.49 | 392,841.96 | 39,929.04 | 23.52 |
| 392,841.97 | 750,000.00 | 73,703.40 | 30.00 |
| 750,000.01 | 1,000,000.00 | 180,850.82 | 32.00 |
| 1,000,000.01 | 3,000,000.00 | 280,850.81 | 34.00 |
| 3,000,000.01 | and above | 940,850.81 | 35.00 |
If the employee is considered a non-resident for Mexican tax purposes, the tax rate applicable to compensation will vary from 15% to 30%. The first MXN 125,900 of employment income received in a 12-month floating period will be tax exempt (Worlwide Tax Summaries).
Recources:
taxsummaries.pwc.com/ID/Mexico-Individual-Taxes-on-personal-income