The parliamentary groups Movimiento Ciudadano and Partido del Trabajo have introduced tax reform bills proposing amendments to the Income Tax Law, the Social Security Law, the Value Added Tax Law, and the Fiscal Coordination Law, with the stated goal of reforming the tax collection system by taxing accumulated wealth in order to fund universal social programs. Key proposals include a new tax regime for trusts in which contributed assets exceed MXN 14 million, the introduction of an exit tax on the transfer of tax residency outside Mexico, the abolition of the full exemption for inheritances and bequests above MXN 14 million with progressive rates from 10% to 18%, a new annual tax on individuals in the top income decile targeting the excessive concentration of wealth, an annual tax on net worth exceeding MXN 100 million, and a luxury property tax on private aircraft, yachts, residential armor, and high-value automobiles.
Additionally, the bills contemplate the universalization of social security through a program funded by the revenue from the new wealth taxes. These are initiatives with significant implications for high-net-worth individuals, trust structures, investors with interests in Mexico, and companies with cross-border estate planning.
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