Business · Trade · 5 hrs ago
US Chamber urges Mexico's Senate to revise proposed tax changes
The US Chamber of Commerce urged Mexico’s Senate to revise proposed tax changes included in the country’s 2027 economic package.
The proposal aims to combat tax evasion and abusive tax practices, but the Chamber says it could also affect companies that follow the rules.
It argues that limits on business deductions could tax companies on more than their actual profits, especially firms with high operating costs or low margins.
The proposal would also cut the cap on deductible net interest from 30% to 20% and limit the use of tax losses to half of taxable income.
The Chamber warns that these measures could raise costs and reduce investment and hiring, while putting pressure on cash flow and potentially increasing consumer prices.
It also cites possible double taxation and problems with tax agreements between Mexico and the United States.
The Chamber asked the Senate to protect legitimate operating expenses, keep the current interest-deduction limit and allow full use of losses from before the reform; the Senate is being asked to change the proposal.
The US Chamber of Commerce urged Mexico’s Senate not to approve proposed 2027 tax changes in their current form.
The Chamber warned that limits on business deductions could raise companies’ taxable income above their actual profits.
It said the changes could increase costs for US companies operating in Mexico and weaken the country’s appeal as an investment destination.
The proposals include reducing the net-interest deduction limit from 30% to 20% and limiting the use of tax losses to 50% of taxable income.
The Chamber said the measures could reduce investment and hiring, pressure businesses’ cash flow and lead to higher consumer prices.
- Who
- The US Chamber of Commerce urged Mexico’s Senate to revise the proposed tax changes.
- What
- It asked the Senate not to approve the 2027 Economic Package in its current form, citing possible effects on legitimate business expenses and investment.
- When
- The articles were published on November 3, 2026. The date of the Chamber’s letter is not stated.
- Where
- Mexico; the Chamber sent its letter to Senator Miguel Ángel Yunes.
- Why
- The Chamber said the proposed limits on deductions and other tax changes could raise companies’ tax costs, affect investment and create risks of double taxation.
US Chamber of Commerce
Supporters of the tax changes
Purpose of the proposal
US Chamber of Commerce
The Chamber acknowledged the aim of combating tax evasion and abusive tax practices, but said the changes could also penalize compliant businesses.
Supporters of the tax changes
The proposal seeks to combat tax evasion and simulated transactions.
Business deductions
US Chamber of Commerce
The Chamber said broad limits could tax companies on more than their actual profits, even when expenses are legitimate and documented.
Supporters of the tax changes
Not stated in the sources.
Mexico’s proposed package included tax changes that the Chamber said could restrict business deductions.
The US Chamber of Commerce’s call for revisions was reported by El Financiero and Expansión MX.
- Package
- Mexico’s 2027 Economic Package
- Interest deduction limit
- Proposed reduction from 30% to 20% of adjusted taxable income
- Use of tax losses
- Proposed limit of 50% of taxable income
- Letter recipient
- Senator Miguel Ángel Yunes
- Letter signatory
- Neil Herrington, the Chamber’s senior vice president for the Americas
2 sources
What people are saying
Por estas razones, la Cámara insta respetuosamente al Senado a no aprobar el Paquete Económico 2027 tal como está redactado.
Tal como están redactadas actualmente, las reformas propuestas son difíciles de conciliar con los principios fundamentales de una política tributaria sólida, tal como se refleja en las directrices de la Organización para la Cooperación y el Desarrollo Económicos (OCDE), incluyendo aquellos relativos a la seguridad jurídica, la administrabilidad, la proporcionalidad, la tributación de la renta neta, la prevención de la doble imposición y el respeto de los mecanismos bilaterales de prevención de controversias, como los Acuerdos Anticipados de Precios (AAP).