The Official Gazette of Mexico City published on December 30, 2021, the decree by which various provisions of Mexico City’s Tax Code (from now on “CDMX-TC”) are added, amended, or repealed.
Said reform includes, among its changes, relevant modifications applicable to the technological platforms operating in Mexico City, which are detailed below:
2% use tax to technological intermediation platforms to distribute goods and food within Mexico City.
Taxpayers who carry out intermediation activities through computer platforms allowing users to contact third parties to deliver or receive packages with food, provisions, or any merchandise within Mexico City’s territory must pay monthly for the use and exploitation of Mexico City’s infrastructure: a fee for its use.
This fee for use corresponds to 2% of the total commissions or fees that under any denomination are charged for each operation carried out in Mexico City before taxes.
The decree emphasizes that the fee for use must be paid directly by the platform providing the intermediation service and shall not be transferred to distributors, end-users, product suppliers, or individuals and legal entities that only deliver the products, parcels, and/or documents (courier services).
This fee for use must be declared and paid in the forms and by the means established by the Ministry of Finance, no later than the fifteenth day of each month. It should be noted that, until now, the specific rules for the fulfillment of this obligation have not been published.
8% tax on public shows transmitted digitally in Mexico City
As of January 1, 2022, as per article 134 of the CDMX-TC, any act, function, or entertainment to which the public has access, either live or broadcasted live through digital media for which a fee is paid, is considered a public show. In the case of events through digital media, whose broadcasting is live within Mexico City’s territory and for which a payment is made to obtain an access link, username, and password, or any other method to access the broadcasted event will be considered as such.
Considering the above and based on article 139 of the CDMX-TC, public shows broadcasted through digital media will pay 8% tax on the show’s price.
5% tax on earnings from intermediaries or hosting services on online platforms
Until 2021, the CDMX-TC considered the taxpayers who acted as intermediaries, facilitators, or promoters of lodging services as jointly responsible; however, as a result of this reform, managers and owners of the property or whoever collects the compensation for the services mentioned above are also included as jointly liable.
The above means that if the platform fails to report the total tax, the administrators, property owners, or whoever collects the consideration will be required to calculate the tax, applying the 5% rate, which must be informed and paid no later than the 15th day of the immediately following month.
If you have any questions or need advice in this regard, we are at your service to support you.